Bharat Dynamics, HAL, GRSE Fall Up To 3%: What's Dragging Defence Stocks Today?
Last Updated: July 10, 2025, 13:30 IST
Defence Stocks Fall (Representational Photo)
Why Are Defence Stocks Falling Today? Defence stocks declined in Thursday's trade, with the Nifty India Defence index slipping 1.4 per cent to around 8,739 in morning deals. The dip comes amid concerns around high valuations, easing geopolitical tensions, and profit-booking by investors after a strong rally earlier this year.
Among the biggest losers, Bharat Dynamics Ltd (BDL) dropped over 3 per cent to Rs 1,917 after Motilal Oswal Financial Services initiated coverage with a 'Neutral' rating and a target price of Rs 1,900. The brokerage said that while it liked BDL's business model and growth potential, the current valuation appeared fair, prompting a more cautious stance. It added that revenue growth may rebound on the back of emergency procurement orders.
Garden Reach Shipbuilders & Engineers (GRSE) also fell more than 3 per cent to Rs 2,890. The stock has already declined nearly 11 per cent over the past month, although it remains up 96 per cent over the last six months.
Other defence counters including Data Patterns and Zen Technologies were down over 2 per cent, while HAL, Solar Industries, and Cochin Shipyard also fell more than 2 per cent. Mazagon Dock, BEL, and Paras Defence slipped between 0.6–1 per cent, while BEML traded with marginal losses. Concerns over elevated valuations
The defence stocks have been in focus on hopes of higher order inflows, after the Indian military conducted targeted strikes against terrorist outfits in Pakistan under the codename 'Operation Sindoor' in May. As the geopolitical tensions between India and Pakistan eased, the escalations in Russia-Ukraine war continued to support the rally in defence stocks. The rise in tensions between Israel and Iran further boosted the stocks. However, analysts have mixed views regarding the space, with some flagging elevated valuations in these stocks. Easing geopolitical tensions
The fall in the defence stocks also comes on the back of overall easing geopolitical tensions. US President Donald Trump had hinted at a possible Gaza ceasefire deal between Israel and Hamas this week. This comes amid Israeli Prime Minister Benjamin Netanyahu's visit to US. Earlier, the easing tensions between Iran and Israel after significant escalations in the oil-rich middle east, had pushed down the stocks.
Swipe Left For Next Video View all Profit booking after record rally
Defence stocks may have also dropped as investors booked profits at elevated levels. The stocks have seen significant surge in 2025 so far. BDL shares have gained over 69 per cent this year, while those of jumped 75 per cent. HAL shares are up 19 per cent while Mazagon Dock Shipbuilders shares are up nearly 46 per cent. Aparna Deb
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a... Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a... Read More Stay updated with all the latest news on the Stock Market, including market trends, Sensex and Nifty updates, top gainers and losers, and expert analysis. Get real-time insights, financial reports, and investment strategies—only on News18. view comments News business » markets Bharat Dynamics, HAL, GRSE Fall Up To 3%: What's Dragging Defence Stocks Today? Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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