Defense Stocks Tumble: Profit Taking Triggers 15% Crash!

Defence stock shares plunged by 15% during the early trading hours on 4 June as investors rushed to capitalize on profits following a bullish run in recent times.

In recent years, defence stocks have been in high demand, driven by the Modi government's focus on bolstering domestic defence manufacturing through initiatives like Atma Nirbhar Bharat.

Over the past year, key players like Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Cochin Shipyard have witnessed remarkable growth, doubling or even tripling in value.

As investors anticipated a potential market correction following the recent general elections, defence stocks faced substantial sell-offs. At 11:10 am, Bharat Electronics saw the steepest decline, hitting the lower circuit on the BSE, followed by Bharat Dynamics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Cochin Shipyard, with drops ranging from 10-12%.

Interestingly, in the previous session, shares of Hindustan Aeronautics, Bharat Dynamics, and Bharat Electronics had soared to all-time highs after exit polls hinted at a victory for the BJP-led NDA coalition. This outcome suggested continuity in government policies, fueling investor optimism.

News by Rahul Yelligetti