Defence Stocks Under Pressure for Third Straight Session Amid Profit Booking

Market Performance

Defence stocks fell sharply for the third straight trading session on July 18.

The Nifty India Defence Index slipped nearly 2.2%, settling around 8,173 in afternoon trade, extending losses seen in previous sessions.

This marks the sixth fall in the last seven sessions, further highlighting a clear wave of profit booking across the sector.

Main News

Investors continued to exit defence counters following a strong rally earlier this year. As a result, the selling pressure came amid elevated valuations, causing notable corrections in several key stocks.

Previously, defence stocks had surged on the back of:

• Increased expectations of order inflows
• Geopolitical events such as Operation Sindoor in May
• Ongoing global conflicts, including Russia-Ukraine and Israel-Iran tensions

Now, with geopolitical uncertainties easing, investors are booking profits, dragging down stock prices across the segment.

Company-Wise Share Price Movement

To illustrate these moves, below is a breakdown of the performance of top defence-related stocks on July 18:

Bharat Dynamics (BDL)

• Share Price Fall: ~5%
• One of the steepest declines in the sector

Data Patterns

• Share Price Drop: Over 4%
• Ranked among the top losers in the index

BEML

• Share Price Dip: More than 3%
• Faces sustained selling pressure

Astra Microwave Products

• Share Price Decline: Over 3%
• Tracking sector-wide negative sentiment

Cochin Shipyard

• Share Price Drop: Over 2%
• Follows broader market trend

Hindustan Aeronautics (HAL)

• Share Price Fall: Over 2%
• Sees continued profit booking

Mazagon Dock Shipbuilders

• Share Price Decline: More than 1.5%
• Market reacts to easing global tensions

Bharat Electronics (BEL)

• Share Price Fall: More than 1.5%
• Part of the wider defence sector pullback

Solar Industries

• Share Price Drop: More than 1.5%
• Witnesses consistent selling like peers

Paras Defence

• Share Price Fall: Over 1%
• Registers minor loss amid broader fall

Garden Reach Shipbuilders & Engineers (GRSE)

• Share Price Dip: More than 1%
• Continues downward movement for third session

Company Details

These firms anchor India’s defence manufacturing and R&D.

Previously, they had attracted investor attention due to strong order books, geopolitical developments, and expectations of defence budget boosts.

However, the recent downturn reflects valuation corrections and profit-taking behavior, which are typical after extended bull runs.

Summary of the Article

• Defence stocks declined for the third straight session on July 18
• Nifty India Defence Index dropped 2.2%, settling near 8,173
• BDL, Data Patterns, BEML, Astra Microwave led the fall with 3–5% losses
• Other major names like HAL, BEL, Cochin Shipyard, and GRSE also saw 1–2% drops
• The pullback follows a rally on geopolitical events and now easing global tensions.
• Profit booking and valuation concerns appear to be driving the recent declines