Defence stocks: Following a relentless rally in recent trading sessions, investors booked profits, which caused defence stocks to plummet in trade on June 19. Shares of Bharat Dynamics fell more than 5%, and those of Hindustan Aeronautics (HAL) and Bharat Electronics (BEL) fell up to 5%.
On June 5, the Bharatiya Janata Party (BJP) had enough support from key allies to form a coalition government that would ensure Modi’s return to power for a third term. Since then, defense stocks have been going up.
The Modi government has put the defense industry first by increasing exports, budgets, and funding.
Investors poured money into the sector and are already seeing profits, which encouraged them to continue economic reforms and maintain policy continuity.
India’s Third Most Successful IPO, Paras Defence & Space Technologies, Sees Stock Surge by 20%
The goal of Defense Minister Rajnath Singh to boost defense exports in the future is what spurred the current optimism. According to Money control, when taking over the Defence Ministry for a second term, Rajnath Singh set a lofty goal to export defense equipment valued at more than Rs 50,000 crore by 2028–2029.
The stocks of defense shipbuilding companies, including Garden Reach Shipbuilders & Engineers, Cochin Shipyard, and Mazagon Dock Shipbuilders, also experienced intraday declines of three to 5%.
Another group of defense stocks that went down by up to 5.5% was Astra Microwave Products, MTAR Technologies, ideaForge Technology, Zen Technologies, Avantel, PTC Industries, Solar Industries India, and Walchandnagar Industries.
Even though most stocks in the industry were going down, Paras Defence’s stock ended up about 2%.
