Defence stocks bleed upto 15% as profit booking heats up; Bharat Electronics, HAL, Mazagon Dock worst hit

Shares of defense-related companies plummeted as much as 15 percent in trade on June 4 as investors rushed to take home partial profits after the bull run seen in these counters in recent times.

Defense stocks have been the flavor of the season under the Modi government, reaching greater highs on the back of the government's push towards the indigenization of defense manufacturing under the Atmanirbhar Bharat theme.

Most defense stocks, including Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Mazagaon Dock Shipbuilders, and Cochin Shipyard, have delivered over twofold returns in the past year. With investors sitting on heaps of profits, analysts had predicted a bout of profit booking to seep into the space on the day of the voting of the general elections.

At 11.10 am, shares of Bharat Electronics were the worst hit within the defence pack, locked in the 15 percent lower circuit on the BSE. Following closely, shares of Bharat Dynamics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Cochin Shipyard were also down around 10-12 percent each.