INSUBCONTINENT EXCLUSIVE:
Shares of key Indian defence companies like HAL, BDL, Data Patterns tumbled up to 5% on Friday as investors continued to lock in gains
following a months-long rally, dragging the Nifty India Defence index down by 2.2%, its third straight day of losses and sixth in the past
seven sessions.Data Patterns led the decline with a drop of 4.6% to Rs 2,760, while Bharat Dynamics Ltd (BDL) fell as much as 3.9% to Rs
Shares of Hindustan Aeronautics Ltd (HAL) slipped 2.5% to Rs 4,666.50.Other notable laggards included Cochin Shipyard and BEML, which were
also down 2.5%, while Mazagon Dock Shipbuilders and Bharat Electronics Ltd (BEL) lost 2% each
Shares of Paras Defence and Garden Reach Shipbuilders & Engineers (GRSE) declined by over 1%.Defence stocks had rallied sharply earlier this
year, buoyed by expectations of strong order inflows and escalating geopolitical tensions
hostilities between Russia and Ukraine and a flare-up in tensions between Israel and Iran added further momentum to the rally.However, with
the global security environment showing signs of stabilisation, that upward momentum has begun to fade
As concerns around valuations rise, analysts now warn that the sector may be overstretched after the recent run-up.
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declining for a third straight session, the broader sentiment around defence stocks appears to be shifting from optimism to
caution.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own
These do not represent the views of TheIndianSubcontinent)
