13-05-2025
Ideaforge shares slip 3% after 3-day rally on India-Pakistan military escalation
The stock had climbed steadily since Wednesday, when India launched strikes on nine terror sites in Pakistan in retaliation for a deadly attack in Kashmir that killed 26 people.
Ideaforge Technology shares experienced a dip following a 37% surge driven by heightened India-Pakistan tensions, as investors cashed in on profits. Despite easing hostilities, the stock's rally, fueled by increased defence spending expectations, showed signs of overbought conditions. While a near-term pullback is anticipated, brokerages remain optimistic about Indian defence stocks due to favourable geopolitical factors and export potential.
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Technical indicators point to pullback
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Shares of Ideaforge Technology fell as much as 3% to Rs 476.60 on the BSE on Tuesday, as investors booked profits following a sharp 37% rally over the past three sessions, spurred by a surge in defence stocks amid military escalation between India and stock had climbed steadily since Wednesday, when India launched strikes on nine terror sites in Pakistan in retaliation for a deadly attack in Kashmir that killed 26 people. The border conflict marked the most severe confrontation between the two nations in nearly three decades, sparking a rally across defence-related stocks, including Monday, shares of Ideaforge jumped as much as 7.9% intraday to Rs 500 despite reports of a pause in hostilities. The rally was bolstered by broader market bets on defence spending and surveillance technology in light of the military officials had reportedly sent a "hotline message" to Pakistan on Sunday, warning of further retaliation if ceasefire violations continued. However, with tensions showing signs of easing, traders appeared to lock in gains on the last week alone, Ideaforge shares gained 25.76%. The stock is up 19.7% in the past three months but remains down 19.8% over the last six signals indicated the stock was in overbought territory, with a 14-day Relative Strength Index (RSI) of 74.1—above the 70 threshold typically seen as a sign of overheating. It was also trading below its 150-day and 200-day simple moving averages, suggesting a near-term pullback was brokerage Ashika Institutional Equity said it remains bullish on Indian defence stocks, citing 'a favourable backdrop of heightened geopolitical activity , expanding order books, and growing export potential. Ideaforge Technology is a leading Indian manufacturer of Unmanned Aircraft Systems (UAS), offering UAVs for mapping, surveillance, and security applications across sectors such as mining and infrastructure. The company has the largest operational deployment of indigenous UAVs in India, with one Ideaforge-manufactured drone reportedly taking off every five company's fully in-house capabilities allow it to design, engineer, and manufacture UAVs with tight control over performance and reliability. It was also an early pioneer in the country's drone space, having developed vertical take-off and landing (VTOL) UAVs as far back as 2009.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
