Defence stocks drop up to 9%; Bharat Dynamics, Bharat Electronics, Mazagon Dock Shipbuilders are down by 6%

Following the recent bull run in these counters, investors dashed to take home partial profits, causing shares of defence-related companies to drop around 9% in opening trading on June 4.

Defence stocks have been the hit of the year under the Modi government, achieving new highs on the basis of the government’s drive toward the indigenization of defence production under the Atmanirbhar Bharat theme.

The majority of defence stocks have produced gains that have more than doubled over the last 12 months, including Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Mazagaon Dock Shipbuilders and Cochin Shipyard. Analysts predicted that on the day of the general election, there would be a wave of profit booking as investors were sitting on massive profits.

Among the defence category, Hindustan Aeronautics’ shares suffered the most at 09.27 am, falling more than 7% on the BSE. Shares of Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Cochin Shipyard were all down about 6 per cent.

Among these, the stock prices of Hindustan Aeronautics, Bharat Dynamics and Bharat Electronics jumped by about ten per cent and reached record highs during the previous trading session due to exit polls indicating that the BJP-led NDA will return, clearing the path for the current government.

 

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