Defence Stocks Crash: HAL down 2%, GRSE down 6%, Mazdock down 2%, BDL down 4% on profit-booking
By Aditya Bhagchandani Published on June 24, 2025, 09:47 IST
India's defence stocks witnessed a sharp correction on Tuesday, June 24, following reports of a ceasefire announcement between Israel and Iran by US President Donald Trump. Although both nations are yet to confirm the ceasefire officially, the statement prompted heavy profit booking across defence counters.
Shares of Hindustan Aeronautics Ltd (HAL) dropped 2%, while Garden Reach Shipbuilders & Engineers (GRSE) plunged 6% to become one of the top laggards among defence scrips. Mazagon Dock Shipbuilders fell 2% and Bharat Dynamics Ltd (BDL) slipped 4%, reversing recent gains seen in the sector.
The broader market also opened on a subdued note and extended losses throughout Monday's session. The BSE Sensex dropped 511.38 points or 0.62% to settle at 81,896.79, while the NSE Nifty50 slipped 140.50 points or 0.56% to end at 24,971.90.
Mishra Dhatu Nigam was another notable loser, plunging 5% after gaining 15% over the past month. Cochin Shipyard and Astra Microwave, which had rallied 20% and 10% respectively in recent sessions, also gave up some ground, sliding 2% and 4% each.
Analysts attribute the correction to traders locking in profits amid geopolitical developments. Brokerage firm Nirmal Bang, which has maintained a bullish stance on defence stocks due to indigenisation efforts and robust order books, reaffirmed Solar Industries, HAL, BDL, BEML, and Data Patterns as its top picks.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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