By Sheetal Kumari | March 3, 2025
MC Markets | December 17
Defence shares fell for fourth straight session on December 18, declining up to 3% amid weak sentiment and profit booking.
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The defence index is down around 11% in the past one month, even as the broader Nifty remained largely flat.
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Shravan Shetty of Primus Partners said the fall is led by profit booking, foreign investor outflows and fading of the earlier geopolitical conflict premium.
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Analysts cited talks around a possible Russia-Ukraine peace deal, which has reduced the “war premium” built into defence stocks.
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Experts said the possible peace deal will not lead to a structural downturn. Long-term demand remains supported by government spending and modernisation plans.
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Analysts advised investors to see the fall as a sentiment-driven, short-term correction and keep an eye on budget trends and order pipelines.
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The long-term outlook for defence stocks remains strong. Analysts said such corrections may offer better entry points rather than exit signals for long-term investors.
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Moneycontrol advises users to check with certified experts before taking any investment decisions.
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