Shares of Mazagon Dock fell a little over 11% to day’s low of Rs 2,898.25 while Bharat Dynamics and BEL shares fell by 9.8% to their respective lows of Rs 1,440.35 and Rs 287.25. Cochin Shipyard shares dipped nearly 9% while Hindustan Aeronautics shares fell 10%.
Most of these defence stocks have given multibagger returns to their investors in the last one year.
Also read: Adani stocks crash up to 8% a day after erasing Hindenburg-era losses
“If the current government retains majority, as exit polls suggest, it adds wings to the strong sector outlook,” Jefferies said in a report, adding that power and defence linked capex have the highest visibility.Commenting on outlook in Modi 3.0, Atul Parakh, CEO of Bigul, said that in the renewed mandate for Modi 3.0, expectations for mid-caps and small-caps hinge on key sectors poised for government focus viz. infrastructure, defence, railways, and PSU banks. These sectors will throw up potential opportunities for midcap and small-cap companies.Today, PSU bank stocks also fell sharply by up to 10% in intraday trade on the BSE, following early trends which showed the BJP-led NDA coalition having an upper edge in the race to majority mark. However, these early numbers were not in line with exit polls, causing investor concerns.Defense stocks have been delivering consistently under the Modi government, reaching greater highs on the back of the government’s push towards the ‘Make In India’ scheme which promotes manufacturing in India under the Atmanirbhar Bharat theme.
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