Defence stocks in India, including BEML and Garden Reach Shipbuilders, declined sharply on June 24 as signs of a ceasefire between Israel and Iran emerged. The Nifty Defence index fell over 2%, with major constituents losing up to 6.4% amid profit booking following earlier gains during regional tensions.
Defence sector stocks in India experienced significant declines on June 24, 2025, as market sentiment cooled amid emerging signs of a ceasefire between Israel and Iran. The Nifty Defence index, tracking 18 key companies, saw 17 constituents open in the red, with a cumulative intraday decline of 2.2%, marking its second-largest single-day drop this month.
BEML Limited, a government-owned aerospace and defence company based in Karnataka, led the fall with a sharp 6.4% drop to ₹4,481 per share. Garden Reach Shipbuilders & Engineers Ltd. (GRSE), a key shipbuilding company under the Ministry of Defence headquartered in West Bengal, followed closely with a 5.2% loss to ₹3,313 per share.
Other prominent defence stocks such as Paras Defence, Hindustan Aeronautics Ltd (HAL), Zen Technologies, Cochin Shipyard, and Mishra Dhatu Nigam declined between 2% and 4%, driven by widespread profit booking. The broader Nifty Defence index touched a low of ₹8,868 during the day.
The dip follows weeks of bullish activity in defence counters amid escalating geopolitical tensions in the Middle East. However, the announcement by former U.S. President Donald Trump of a ceasefire agreement between Israel and Iran shifted global market dynamics. Trump declared that both nations had committed to a 12-hour ceasefire, with an aim to end the hostilities within 24 hours.
Iran’s semi-official news agency SNN reported that Tehran launched its final round of missiles just before the ceasefire came into effect. Meanwhile, Iran’s Foreign Minister warned that complete cessation of hostilities would only occur if Israel halted its military aggression.
Despite Iran reportedly firing missiles at a U.S. military base in Qatar in retaliation for American strikes on its nuclear sites, no casualties were reported, and the U.S. successfully intercepted the missiles. This development offered some relief to global markets, including Indian equities, which had been weighed down by war-driven uncertainties.
The geopolitical conflict began on June 13, when Israel initiated “Operation Rising Lion” targeting Iranian nuclear and military sites. Iran responded with “Operation True Promise 3,” a missile and drone campaign directed at Israeli strategic infrastructure.
Market analysts believe that the easing tensions prompted institutional investors to book profits in defence stocks that had rallied strongly in recent weeks. Despite the decline, analysts maintain a cautious outlook, suggesting that long-term fundamentals in India’s defence sector remain strong amid government support and rising export potential.