Nifty India Defence index falls 3.5% amid profit booking; BEL, Dynamatic Tech lead losses

Defence shares in India see profit booking in trade.

The Nifty India Defence index fell 3.5 percent in Monday’s trade amid profit booking in defence shares after a rally in the previous two sessions, during which the index had gained more than 5 percent.

All 18 constituents of the index were trading in the red, in line with weakness across the broader market.

The Sensex plunged 2,345.89 points, or 2.97 percent, to 76,573.01. The Nifty declined 708.75 points, or 2.89 percent, to 23,741.70. All 16 major sectoral indices were trading lower.

Broader markets also saw heavy selling pressure, with the Nifty Smallcap100 and Nifty Midcap100 indices falling about 3 percent each.

Dynamatic Technologies was among the major laggards in the defence index, declining up to 6 percent.

Heavyweights Bharat Electronics, Mazagon Dock Shipbuilders and Hindustan Aeronautics fell 3.3 percent, 4.17 percent and 1 percent, respectively.

The gains seen last week came amid heightened geopolitical uncertainty, which typically increases focus on defence preparedness among countries. This can drive demand for equipment such as missiles, surveillance systems, drones, ammunition and radar systems, often leading to buying in defence-related stocks on expectations of higher orders and improved business prospects.

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