HAL, Mazagon Dock And Other Defence Stocks Tank On Tighter-Than-Expected Poll Results
The defence counters' decline comes amid a sharp fall in the benchmark indices and the weakening rupee.
Shares of Indian defence companies slumped on Tuesday after the initial election results indicated a tighter-than-expected fight for the Modi-led government.
The defence counters' decline comes amid a sharp fall in the benchmark indices and the weakening rupee. Intraday, Nifty fell as much as 8.52% to 21,281.4, the highest intraday fall since March 23, 2020, while Sensex declined 8.15% to 70,234.4.
During the session, the Nifty 50 companies' market capitalisation loss widened over Rs 10.2 lakh crore.
The decline in this sector comes after Hindustan Aeronautics Ltd., Bharat Dynamics Ltd. and Bharat Electronics Ltd. hit all-time highs on Monday after exit polls results.
.png?auto=format%2Ccompress)
The loss in the sector was led by Hindustan Aeronautics Ltd., which closed 17.17% lower on Tuesday. This was followed by Mazagon Dock Shipbuilders Ltd. and Larsen & Toubro Ltd. During the day, Hindustan Aeronautics, Garden Reach Shipbuilders and Engineers Ltd., Cochin Shipyard Ltd. and Bharat Dynamics Ltd., among others, were locked in the 10% lower circuit.
The NSE Nifty 50 closed 1,379.4 points, or 5.93%, lower at 21,884.5, while the S&P BSE Sensex ended down 4,389.7 points, or 5.74%, at 72,079.
