The sharp rise in the share prices pushed the Nifty India Defence index up 1.6% in the afternoon.
Defence stocks: The sharp rise in the share prices pushed the Nifty India Defence index up nearly 1 percent to hover around 7,760.25.
Defence stocks: The sharp rise in the share prices pushed the Nifty Defence index up nearly 1.3%
Defence stocks: The defence index dropped 2% to 7,662, extending losses for the third consecutive session.
The defence stocks saw significant rally earlier this year, but analysts now flag high valuations.
Paras Defence and Space Technologies led the losses, falling 7.84 percent to hit an intraday low of Rs 860.4 on the NSE. The stock declined after rising for four straight sessions.
Defence stocks: Paras Defence shares rallied 9% after turning ex-split.
Defence stocks: 'Further profit-taking appears likely and would be considered healthy, given the significant rally in recent weeks,' says Ajit Mishra from Religare Broking.
The Nifty Defence index rose 2 percent, with 16 out of 18 constituents trading in the green.
Defence stocks: 'While the momentum may fluctuate, the long-term outlook for India’s defence sector remains structurally attractive in an increasingly uncertain global landscape,' says Ajit Mishra from Religare Broking.
Defence stocks: Zen Tech shares surged over 60% in May following 'Operation Sindoor', but have closed in the red in five out of the past eight sessions.
On June 3, Nifty India Defence index was up 1.6 percent to hover around 8,833, thus bucking the downtrend in the overall market.
The rise in the defence shares also comes amid an overall uptrend in the market, with benchmark indices Sensex and Nifty snapping a three-day losing streak
Defence stocks rallied sharply on May 19 after the Defence Acquisition Council approved emergency procurement of arms worth around Rs 40,000 crore.
Defence index hit the fresh 52-week high on Friday amid strong buying in the sector on hopes of boost in domestic defence manufacturing industry after Operation Sindoor achieved unequivocal success.
The Indian government announced that Pakistan attempted strikes on Indian military installations using drones and missiles overnight. Indian Armed Forces then targeted air defence radars and systems at multiple locations inside Pakistan, and an air defence system positioned in Lahore was successfully neutralised.
The shares of the PSU defence company have so far fallen over 13 percent in the last five sessions and nearly 22 percent from the 52-week high level.
In the past five years, the defence index has grown at a 44 percent CAGR against the Nifty's 15 percent
Market sources told Moneycontrol that since the number of stocks and investment options are limited, a reasonable inflow in its NFO period will suffice for the fund.