Nifty Defence index slips 12% in July: Why are defence stocks falling?

Thus far in the month of July, Nifty India Defence index has underperformed the market by falling 12 per cent, as against 3.3 per cent decline in Nifty 50.

Defence companies share price

 

Shares of defence companies were under pressure, with the Nifty India Defence index falling over 2 per cent on the National Stock Exchange (NSE) in Monday’s intra-day trade.

 

Paras Defence and Space Technologies (down 10 per cent at ₹704.70) and Zen Technologies (down 5 per cent at ₹1,690.70) were locked in their respective lower circuits on the NSE. 

 

Apollo Micro Systems, Data Patterns (India), Dynamatic Technologies, Mazagon Dock Shipbuilders, BEML, DCX India, Cochin Shipyard, Garden Reach Shipbuilders & Engineers (GRSE), MTAR Technologies, BEL and Bharat Dynamics (BDL) were down in the range 3 per