Defence stocks in India plunge up to 7% post West Asia truce; stay updated on market movements and global defence trends
Decline in defense stocks by up to 7% this week: Two crucial elements to monitor closely
Let's chat about the tumble in India's defence stocks! Since the West Asia ceasefire hit headlines earlier this week, defence stocks have taken a steep dive - up to 7%. Garden Reach Shipbuilders & Engineers, for instance, lost a whopping 5.5%, while Bharat Dynamics, a significant player in the defence sector, corrected by a less severe 3.6%.
speaking of noteworthy declines, take a look at Mtar Technologies - it has plummeted almost 7% in just the last five trading sessions due to the ceasefire news. DCX Systems followed closely behind with an over 6% fall during the same timeframe.
In sharp contrast, some defence stocks managed to secure gains, with Cyient DLM chalking up a return of 5.2%. BEML's share price also saw a notable increase, rising 3.74% in the last week.
Why the discrepancy? Well, NATO recently upped the ante with increased defence spending plans. While US President Donald Trump insists members should aim for the 5% level, only a few - like Poland and the Baltic states - are currently heading in that direction. The US itself isn't too far behind, sitting at 3.4% in 2024.
Recently, NATO's 32 member countries reached an agreement to dedicate 3.5% to core military needs by 2035, with 1.5% set aside for broader defence-related areas, such as cybersecurity and infrastructure.
What about the Iran-Israel conflict and the resulting ceasefire? Despite Trump's displeasure with Israel for breaking the ceasefire, the West Asian truce appears to be holding firm. According to Vinod Nair, Head of Research at Geojit Investments, India's equity markets have gained momentum, supported by a reduction in Middle East tensions and a drop in crude oil prices.
Stay on top of market moves and global defence trends with us! Follow our website and check out our app for the latest updates on BEML Limited, Cyient DLM, DCX Systems, and other defence stocks, plus other business news and stock market stats.
Historical context: The aforementioned defense stocks and their respective percentage losses reported around late June 2025, in the aftermath of the Iran-Israel conflict, also included HAL (Hindustan Aeronautics Limited) with a decline of up to 4%, BEL (Bharat Electronics Limited) with a decline of up to 4%, Midhani (Mishra Dhatu Nigam Limited) with a fall between 5-10%, and other notable losers such as Zen Technologies, Unimech Aerospace and Manufacturing, Data Patterns, ideaForge Technology, and Dynamatic Technologies [1][2][3]. In contrast, Solar Industries India showed marginal gains, supported by global defence spending dynamics such as NATO's increased expenditure plans [1][3].
- The investment landscape for defense stocks is diverse, with some stocks showing decreases, like Mtar Technologies' 7% drop over the past five trading sessions, while others, such as Cyient DLM, have managed to secure gains, recording a return of 5.2%.
- The market for DeFi (Decentralized Finance) and crypto-investments might provide alternative opportunities for investors seeking growth, considering the fluctuations in traditional stock markets like the defense sector.
- For sports enthusiasts, tracking the performance of defense stocks might not seem directly related, but understanding the global trends in defense spending, such as NATO's plans to dedicate 3.5% to core military needs by 2035, could indirectly influence sponsorship activities and overall growth in the sports industry.
