Cochin Shipyard, Mazagon, HAL slip up to 4% as defence stocks retreat after last week's rally cools
defence stocks
retreated on Monday, as investors locked in profits following last week's sharp gains. Shares of
Cochin Shipyard
,
Mazagon Dock Shipbuilders
, Hindustan Aeronautics Ltd (
HAL
), and Garden Reach Shipbuilders & Engineers (GRSE) fell as much as 4%, pausing a spectacular run-up driven by bullish sentiment around new order flows and the success of
Operation Sindoor
.
Shares of
Mazagon
Dock slipped 4.2% to Rs 3377.40 on the BSE, while Cochin Shipyard declined 3.7% to Rs 1960.05. HAL dropped as much as 3% to Rs 4972.10, and GRSE fell 4.4% to Rs 2372.20. All four stocks had logged double-digit percentage gains in the previous week, with Cochin Shipyard and GRSE climbing over 40% from May 9 to May 17.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
15 Most Beautiful Female Athletes in the World
WomenSportOnline.com
Click Here
Undo
The pullback reflects profit-taking after a dramatic rally sparked by the Indian military's successful demonstration of indigenous missile and drone capabilities during Operation Sindoor. The rally added Rs 1.8 lakh crore in market value to defence-related stocks since May 9. Drone-maker
ideaForge Technology
surged 56%, while Cochin Shipyard and GRSE notched up 41% and 40% gains, respectively.
Defence PSU HAL, which shared its FY26 guidance during its earnings call held post-market on Friday, had gained 16% last week.
Despite Monday's decline, analysts remain optimistic about the sector's long-term prospects. Antique Stock Broking expects a sharp acceleration in order flows over the next two years, particularly for shipbuilders like Mazagon Dock, GRSE, and Cochin Shipyard. 'We see large orders being placed in FY26–27 led by the ordering of six submarines under P75I, three Kalvari-class submarines, next-generation Corvettes, and P-17B Frigates, besides a host of smaller vessels,' the brokerage said.
Live Events
Antique projects that the combined order books of the three shipbuilders could more than triple by FY27. It has a 'buy' rating on Mazagon Dock and GRSE, and a 'hold' on Cochin Shipyard due to uncertainty around the scale and timing of the proposed second indigenous aircraft carrier (IAC-II).
The brokerage estimates strong visibility on Rs 2.12 lakh crore worth of orders expected to be awarded over FY26–27. These include Rs 36,000 crore for three additional Kalvari-class submarines expected in FY26, Rs 70,000 crore for the P75I submarine program likely to be finalised by FY27, Rs 36,000 crore for next-generation corvettes equipped with BrahMos missiles, and Rs 70,000 crore for the P-17B frigate program.
The Defence Acquisition Council has approved Rs 8.45 lakh crore in orders between FY22 and FY25—more than triple the amount cleared in the preceding three years.
While Cochin Shipyard awaits clarity on IAC-II, Antique said this overhang does not alter its broader bullish view. 'Looking beyond FY27, we see the next wave of large-scale orders led by Project-18 destroyers and the indigenous Project-76 submarine program,' the brokerage noted.
The recent run is not without precedent. The Nifty Defence index surged 350% between July 2022 and July 2024, only to correct 38% by February 2025 amid investor caution. The success of Operation Sindoor has since reignited interest, but Monday's declines suggest that near-term volatility may persist, even as the structural story remains intact.
Also read |
Defence stocks detonate in Rs 1.8 lakh crore boom. Is a ceasefire on the charts?
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
18 minutes ago
- The Hindu
CoinDCX hit by $44.2 mn security breach; founders say customer funds unaffected, safe
Indian cryptocurrency exchange CoinDCX has suffered a security breach, resulting in theft of $44.2 million, or ₹378 crore, even as the founders took to X to reassure that customer funds remained unaffected and safe, with the compromise limited to an internal operational account. The total exposure is being absorbed entirely by CoinDCX, using the company's treasury reserves, the company said in a First Incident Report released on Sunday. According to the report, on July 19, at 4 a.m., CoinDCX security systems detected an incident involving unauthorised access to one of its accounts on the partner exchange, leading to a financial exposure of about $44 million. The incident once again puts the spotlight on mounting security threats in the highly volatile world of cryptocurrencies. Last year, crypto exchange WazirX faced a hack in India, leading to the loss of more than $230 million, and marking one of the biggest such heists in India. The theft had prompted a thorough examination of safety measures and eroded sentiments. CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal took to the social media platform X to address the situation, confirming that the attack was the result of a sophisticated server breach, targeting an internal wallet, not the ones holding customer assets. The incident was first flagged by blockchain investigator ZachXBT, following which the exchange made the disclosure public. "Today, one of our internal operational accounts -- used only for liquidity provisioning on a partner exchange -- was compromised due to a sophisticated server breach. I confirm that the CoinDCX wallets used to store customer assets are not impacted and are completely safe. This won't cause any loss to our customers. CoinDCX will be bearing the full amount," Mr. Gupta said. "The total amount lost was USD 44Mn out of our treasury assets. Coindcx Treasury will be bearing these losses," Mr. Khandelwal wrote. Following this, users rushed to check their balances, leading to a spike in withdrawal requests. The sudden surge in activity led to CoinDCX's portfolio APIs, which display user balances and transaction histories, becoming jammed and unresponsive. For several hours, many were unable to even see their holdings on the app, adding fuel to rumours and anxiety online. The co-founders later updated that Portfolio APIs have been restored. Affected infrastructure has been completely isolated, and CoinDCX operations continue to run normally, the company said. CERT-In, or the Indian Computer Emergency Response Team, has been informed about the incident. Detailed forensics with two globally reputed security agencies is being carried out, and reports will be shared for public benefit, it added. "CoinDCX services remain fully operational. Trading activity, INR deposits and INR withdrawals continue. INR withdrawals below Rs 5 lakhs will reflect in your account within 5 hours, while withdrawals above Rs 5 lakhs will be processed within 72 hours. The incident was isolated and has no impact on your portfolio access or operations," the company stated. Social media is flooded with mixed reactions. While some praised CoinDCX for absorbing the losses and protecting user funds, others criticised the delay in public disclosure and raised concerns over the broader security of crypto platforms in India. "Coindcx silent for 17 hours? That's more suspense than a thriller! In crypto, transparency isn't optional; it's key. Stay open to keep trust alive!" a user wrote. "Good to see CoinDCX acting responsibly, assuring user funds are safe, and not passing losses onto customers. Sets a positive precedent for Indian crypto exchanges," another said.
Time of India
an hour ago
- Time of India
Chanda Kochhar got Rs 64 crore bribe to OK Videocon loan: Tribunal
Chanda Kochhar NEW DELHI: Holding Chanda Kochhar , former CEO of ICICI Bank , guilty of receiving bribes of Rs 64 crore through her husband from Videocon group, an appellate tribunal here in an order dated July 3 observed that the money was paid as quid-pro-quo for sanctioning a loan of Rs 300 crore to the Videocon group. 'The history given by the appellants (ED) has been narrated and supported by the evidence in the light of the reference of the statements under Section 50 of the PMLA Act which are admissible and can be relied upon. The allegation made by the appellants stands because on paper ownership of NRPL is shown to be of V N Dhoot (CMD of Videocon group) but according to him also, the entire control of the company was of Deepak Kochhar (Chanda Kochhar's husband). Thus, the allegations were made for quid-pro-quo to Chanda Kochhar for sanction of loan to Videocon group of industries,' the tribunal said in its order. The appellate tribunal slammed the adjudicating authority that had earlier in Nov 2020 given relief to the accused in releasing the attached assets worth Rs 78 crore. 'The adjudicating authority has ignored the material facts while drawing the conclusions which are coming out on the face of the record and, therefore, we cannot endorse the finding of the adjudicating authority going against the record and ignoring the relevant facts. Thus, we find substance in the allegation of the appellants for quid-pro-quo to Chanda Kochhar for sanction of loan of Rs 300 crore to Videocon group and thereupon, a sum of Rs 64 crore was transferred to NRPL, a company managed by Deepak Kochhar and, in fact, he was the managing director of the said company. The factual issues narrated above clarifies that the appellants have taken up the matter to justify the attachment of the property,' the tribunal said, justifying the ED's attachments. The tribunal noted that the sanction of a loan of Rs 300 crore by ICICI Bank to the Videocon group where Chanda Kochhar remained part of the committee was against the rules and policy of the bank. 'The issue remains about the transfer of Rs 64 crore by Videocon group through its entity SEPL to NRPL day after the disbursement of loan by ICICI Bank,' it said while validating the evidence produced by the ED. The appellate tribunal also held Kochhar guilty of not disclosing her conflict of interest while sanctioning the loan.
News18
an hour ago
- News18
Parliament Set For Stormy Monsoon Session As Centre Shows Willingness To Debate Key National Issues
During the business advisory committee (BAC) meetings in both the Lok Sabha and Rajya Sabha, it was indicated that the weekly agenda will be finalised by the respective chairpersons. While the government is eager to move forward with legislative business, including the introduction and discussion of key bills, the opposition has made it clear that it wants direct responses from Prime Minister Narendra Modi on several pressing matters. Among these, likely to dominate is the one on India's response to US President Donald Trump's remarks on trade and the need for a detailed discussion on the recently concluded Operation Sindoor, India's response to the Pahalgam terror attack. Several opposition parties had earlier demanded a special session of Parliament for this, but were told that the monsoon session will serve as the appropriate platform for such a debate. Sunday's meeting of the INDIA bloc served as a curtain raiser, showcasing the opposition front's resolve to corner the government on issues ranging from foreign policy to national security and economic performance. On its part, the ruling BJP is not taking any chances. In addition to fine-tuning its legislative strategy, it is working closely with its NDA allies to ensure cohesion and maximise floor coordination. The sources said in the coming days, a series of internal briefings will be held where senior ministers will interact with NDA MPs, equipping them with talking points and data, particularly on matters relating to defence, foreign affairs, and trade. Amid the expected acrimony and sharp exchanges between the government and opposition, one issue that may see rare consensus across the political spectrum is the impeachment of Justice Yashwant Varma. Forward movement on this front is likely in the coming weeks, the sources said.
