Defence Stocks Plunge 14% Post-Budget: Nifty Defence Index Down 9%
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Moneycontrol•01-02-2026, 15:26
Defence Stocks Plunge 14% Post-Budget: Nifty Defence Index Down 9%
- •Defence sector shares experienced a sharp decline of up to 14% after the budget announcements on Sunday, February 1.
- •The Nifty Defence Index dropped by approximately 9% to 7,458.65, with several individual stocks falling significantly.
- •Market experts attribute the fall to capital expenditure (capex) allocation for defence being lower than market expectations, despite an overall increase.
- •Bharat Dynamics (BDL), Garden Reach Shipbuilders & Engineers, Data Patterns India, and Paras Defence saw major declines.
- •Investors had anticipated a larger budget increase, especially after 'Operation Sindoor,' but the actual allocation disappointed.
Why It Matters: Defence stocks plummeted post-budget due to lower-than-expected capital expenditure allocation, despite an overall increase.
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