Defence stocks on Thursday declined after seeing a jump in early trading hours, with BEML and Bharat Electronics Ltd. leading the decline.
The decline comes after the Ministry of Defence announced that India had intercepted a barrage of Pakistani missiles and drones on the intervening night of Wednesday and Thursday. In the retaliatory action, the Indian forces also neutralised an air defence system in Lahore, it said.
Defence stocks had seen a notable surge in the morning, as tensions between India and Pakistan intensified following India's most significant incursion into Pakistan's territory since 1971—Operation Sindoor. However, the shares, along with the broader markets, gave up initial gains.
BEML and Bharat Forge fell as much as 5% on Thursday, while BEL was down 1.11% to Rs 306.50 per share.
Bharat Dynamics' share price surged as much as 3.45% to Rs 1,497.80 on Thursday, but later pared gains to trade 0.04% lower. Meanwhile, Mazagon Dock Shipbuilders and Hindustan Aeronautics Ltd. shares were trading 0.04% and 1.12% lower, respectively. Garden Reach Shipbuilders & Engineers that had gained 3.64% fell 1.22%, while Cochin Shipyard shares, that had risen 2.87% earlier, were trading 1.48% lower.
Data Patterns was up 6.43%, but pared gains to trade 1.26% higher. MTAR Technologies climbed 5.28% and pared gains to trade 0.38% up. Paras Defence & Aerospace rose 3.02%, but was trading 0.88% lower on Thursday.
Nifty Defence index had seen a significant jump of 1.10%, reaching 7,016.50 on Thursday, as of 3:15 p.m. It was trading 0.56% lower at 6,901.05.
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