Defence Stocks Tumble for Second Straight Day as Ceasefire Cools Tensions; Paras Defence, GRSE, BEL Fall Up to 4%

Market Performance

Defense stocks continued their downward trajectory for the second straight session on June 25, as a ceasefire between Israel and Iran weighed heavily on investor sentiment.

• The Nifty Defence index dropped over 1.2%.
• The decline followed a similar loss in the previous session, signaling a sustained negative trend.

 Main News: Ceasefire Hits Sentiment

The announcement of a "complete and total" ceasefire between Israel and Iran significantly impacted the defense sector. The earlier anticipation of increased defense orders amid geopolitical tensions has now reversed with the easing of hostilities.

Key points from the market reaction:

• Data Patterns: Down nearly 4% to ₹2,818.
• Paras Defence: Fell over 3% to ₹1,597.
• Zen Tech: Dropped more than 2%.
• GRSE & Solar Industries: Each declined around 1.8%.
• BEL, Cochin Shipyard, Mazagon Dock: All recorded losses of over 1%.

Bharat Electronics (BEL) was the top loser on the Nifty 50 index.

Company Details

Here's a quick snapshot of the top impacted defense companies:

While the overall trend was negative, BEML shares bucked the trend with minor gains, and Cyient DLM stood out by rising more than 2%.

 Summary

• Defence stocks dropped sharply for the second consecutive day due to news of a ceasefire between Israel and Iran.
• Key stocks, including Paras Defence, GRSE, and BEL, were among the major losers, with declines ranging from 1% to 4%.
• Investor optimism over higher defense orders, which had driven prices earlier this month, has faded following the latest geopolitical developments.

The current momentum reflects cautious trading in defense counters amid improving global diplomatic relations.