Cochin Shipyard, ideaForge, GRSE and other defence stocks fall up to 7% as post-Sindoor rally unwinds
Live Events
Long-term outlook intact
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Shares of Cochin Shipyard ideaForge Technology , Garden Reach Shipbuilders & Engineers ( GRSE ), and other defence-linked companies extended losses on Tuesday, falling up to 7% as investors continued to book profits following a sharp rally driven by optimism around fresh orders and the success of Operation Sindoor.Cochin Shipyard dropped as much as 6.9% to Rs 1,847.60 on the BSE, while ideaForge fell 6.1% to Rs 536.25. GRSE declined 5.1% to Rs 2,356.05, and Mazagon Dock Shipbuilders lost 3.1% to Rs 3,303.20.Tuesday's fall comes after Monday's broad retreat in defence stocks , when Cochin Shipyard, Mazagon Dock, GRSE and Hindustan Aeronautics Ltd (HAL) fell up to 4%.The sharp pullback follows a surge in defence counters last week, when Cochin Shipyard and GRSE gained 41% and 40% respectively, and drone maker ideaForge soared 56%. HAL also rose 16% over the week, amid investor enthusiasm for India's rising defence manufacturing capacity and export potential.The rally was sparked by the Indian military's high-profile demonstration of indigenous missile and drone capabilities under Operation Sindoor. The event, combined with expectations of large-scale defence orders, added Rs 1.8 lakh crore in market capitalisation to the sector between May 9 and May 17.However, the recent drop underscores investor caution in the short term. '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,' Antique Stock Broking said.Despite the correction, analysts remain bullish on the sector's long-term trajectory. Antique Stock Broking projects that the combined order books of Cochin Shipyard, GRSE and Mazagon Dock could more than triple by FY27. The brokerage has a 'buy' rating on Mazagon Dock and GRSE, while maintaining a 'hold' on Cochin Shipyard, citing uncertainty over the timing and scale of the proposed IAC-II (Indigenous Aircraft Carrier II).Antique sees visibility on Rs 2.12 lakh crore worth of orders over FY26–27, including Rs 36,000 crore for additional Kalvari-class submarines and another Rs 70,000 crore for the P75I program. The Defence Acquisition Council has already approved Rs 8.45 lakh crore in orders between FY22 and FY25—more than triple the approvals from the previous three-year period.Looking ahead, Antique noted, '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 recent correction follows a historical pattern. The Nifty Defence index had surged 350% between July 2022 and July 2024, before dropping 38% by February 2025 amid concerns over valuations. The success of Operation Sindoor has since reignited interest, but Monday and Tuesday's declines suggest that near-term volatility may persist, even as the structural story remains intact.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
15 minutes ago
- The Hindu
Chennai will get its fourth desalination plant at Perur by February next year
Nearly 50% of the work to build the fourth desalination plant along East Coast Road in Perur has been completed so far. The speedy completion of the project will facilitate providing 24x7 piped water supply in the Adyar zone. Inspecting the works in progress to build the Rs. 6,078.40 crore desalination plant to treat 400 million litres of seawater a day (mld), Municipal Administration Minister instructed the officials to complete the work by February 2026. Preliminary work is in progress to lay 59-km long pipeline from the desalination plant to Porur and also build other distribution infrastructure like storage tank and pumping facility at Porur. Chennai Metrowater is also chalking out a project to improve its infrastructure in Pallipattu and Thiruvanmiyur distribution stations to enable round the clock water supply to Adyar zone residents. A press release said the water agency has laid lines to draw raw sea water and release brine into the sea. Work is being carried out to construct various units, including intake structure and pumping station, limestone filter, clear water reservoir and reverse osmosis building. Once the project is finished, nearly 22.67 lakh residents in both Greater Chennai Corporation and Tambaram corporation and 20 other village panchayats would be provided drinking water supply. Some of the areas to be covered including Manapakkam, Vandalur, Kilambakkam, Nandanam and Meenambakkam. also inspected the operation of two desalination plants at Nemmeli with capacity to treat 110 mld and 150 mld respectively. Officials from Chennai Metrowater and Chengalpattu district administration were also present.
The Hindu
15 minutes ago
- The Hindu
Broadway bus terminus to be closed for redevelopment of multi modal facility in the first week of August
The Broadway Bus terminus is expected to be closed for redevelopment in the first week of August as the Chennai Corporation has completed work on the temporary bus terminus near NRT Bridge (Clive Battery) on Ibrahim Salai in Royapuram. At a meeting on Thursday, officials of various agencies agreed to start operations of the temporary bus terminus in the first week of August. Residents have demanded better connectivity between Beach Station and the temporary bus stand to improve public transportation during a period of 30 months of construction of the multi modal facility in Broadway. Chennai Corporation has constructed 55 bus bays, 900 sq m of pedestrian waiting platform with covered shelter, 65 RCC chairs, new bituminous road covering 5300 sq m, 35 street lights of 12 m height, 31 LED focus lights and 200 sq m of passenger waiting hall with 50 chairs. The civic body has installed RO drinking water facility at the temporary bus terminus. As residents have demanded councillors to talk about the safety of women in the temporary bus terminus, GCC has planned several facilities to promote safety. Aavin will create a parlour for passengers in the temporary bus terminus. In a bid to prevent flooding of the area, GCC has created 250 m of storm water drains around the bus terminus. A sewer network measuring 200 m has also been completed. A water sump with a capacity of 21,000 litres has also been completed. GCC has also created facilities for first aid and mothers' feeding rooms, dining rooms for MTC staff and ticket counters. As many as 51 toilet seats have been completed. Self-help groups will be permitted to set up shops in the temporary bus terminus. Chennai Metro Asset Management Limited (CMAML), a special purpose vehicle (SPV) of CMRL will develop the multi modal facility in Broadway with viability gap funding of Rs.200 crore from the State government for the bus terminal, soft loan of RS. 115 crore from CMDA for external infrastructure and term loan of Rs.506 crore from TUFIDCO to GCC. A skywalk will be constructed at a cost of Rs.74 crore to connect Metrorail, suburban and bus terminus in Broadway.
Time of India
28 minutes ago
- Time of India
HC upholds ED's provisional attachment of properties linked to multi-cr coal levy scam
R aipur: The Chhattisgarh High Court dismissed multiple petitions challenging the ED's provisional attachment of properties linked to the alleged multi-crore coal levy scam. The attached assets belonged to a former Officer on Special Duty to the then Chief minister, an IAS officer, and several businessmen arrested in the case. A Division Bench comprising Chief Justice Ramesh Sinha and Justice Bibhu Datta Guru upheld the ED's action, ruling that in money laundering cases, a presumption of a link between attached properties and proceeds of crime is valid in the absence of verifiable legal income. The bench stated that enforcement authorities are not required to produce direct evidence of such linkage, given the complex nature of financial transactions involved. The court found the ED's material—comprising financial analyses, timelines of property acquisition, and lack of legitimate income—sufficient to establish a prima facie nexus. It observed that the Provisional Attachment Order (PAO) was consistent with the legal framework under the Prevention of Money Laundering Act (PMLA) and noted that the appellants failed to rebut the statutory presumption under Section 24 of the Act. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 15 Most Beautiful Women in the World Undo The bench also concurred with the findings of the Appellate Tribunal and concluded that no substantial question of law arose in the matter. The ED Raipur provisionally attached more than 100 movable and immovable properties—bank balances, vehicles, cash, jewellery, and land—belonging to businessman Suryakant Tiwari, his brother, and others, including Saumya Chaurasia, her brother Anurag Chaurasia, their mother, and IAS officer Sameer Vishnoi. Petitions challenging the attachments were filed by KJSL Coal Power and Indramani Minerals through their legal representatives. Special Public Prosecutor Dr Saurabh Kumar Pande represented the ED. The High Court earlier reserved its verdict after detailed hearings on 10 separate petitions and pronounced its judgment on Wednesday. The Appellate Tribunal previously upheld the ED's action, rejecting all appeals against a common order in the high-profile money laundering case. It emphasised that in such cases, direct proof of proceeds of crime (PoC) is not always required due to the indirect and layered nature of financial operations. Suryakant, based in Raipur, was named the alleged mastermind behind a syndicate involved in large-scale extortion. Central Board of Direct Taxes (CBDT) memorandum dated Sept 13, 2022—based on a DGIT (Investigation), Bhopal, report—flagged the matter for ED inquiry under Section 3 of the PMLA. The syndicate allegedly levied an illegal charge of Rs 25 per tonne for coal transport in Chhattisgarh, involving state mining and district officials. Tiwari was reportedly aided by govt functionaries including Saumya Chaurasia, former Deputy Secretary in CM's Office, and IAS officer Sameer Vishnoi. During the hearing, Dr Pande submitted that multiple witnesses deposed under Section 50 of the PMLA, stating that delivery orders (DOs) were issued only after a Rs 25 per tonne cash deposit. Vishnoi allegedly received approximately Rs 10.42 crore in kickbacks for switching from online to offline DOs. The money was said to be invested in companies purchased in the name of his wife. The ED also recovered Rs 22 lakh in cash from Vishnoi, which he could not satisfactorily account for, and found no credible source of income to justify the acquisition of the firms. The High Court dismissed the appeals as meritless, aligning with the conclusions of the Adjudicating Authority and the Appellate Tribunal. However, the appellants retain the right to seek remedies under Section 8(8) of the PMLA.
