Defence Stock shares crashed 15% during the early trading hour on 4 June as investors rushed to take home profits after the bullish run seen on these stocks in recent times. 

Defence stocks have become highly sought after during the tenure of the Modi government, experiencing significant growth due to the government’s emphasis on promoting domestic defence manufacturing through the Atma Nirbhar Bharat initiative.

In the past year, most defence stocks, including Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Cochin Shipyard, have delivered impressive returns, more than doubling in value. As investors enjoy substantial profits, analysts anticipated a potential decline in prices on the day of the general elections.

At 11:10 am, Bharat Electronics witnessed the most significant drop among defence stocks, with its shares falling by 15% and hitting the lower circuit on the BSE. Following closely behind, shares of Bharat Dynamics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Cochin Shipyard also experienced declines of around 10-12%.

Notably, shares of Hindustan Aeronautics, Bharat Dynamics, and Bharat Electronics surged by nearly 10% and reached their all-time highs in the previous session after exit polls projected a victory for the BJP-led NDA coalition. This outcome suggests a continuation of existing policies under the current government.