The Nifty India Defence Index tumbled as much as 1.3% in intraday trading on Friday, 29 May, with constituents declining up to 8%. According to reports from Mint, the index touched an intraday low of 9,124.85 compared with its Wednesday close of 9,253.75. In the 20-pack defence index, 15 stocks were lower while four were higher, reflecting broadly weak sentiment for the sector. The decline was attributed to stock-specific action after March quarter results and profit taking after a sharp rally.
Bharat Dynamics led the losers with an 8% decline following disappointing March quarter results for FY26. As reported by Mint, the company reported a 73% YoY decline in revenue to ₹480 crore in Q4FY26, with weak execution resulting in EBITDA margin at 11.5% versus estimates of 23.8%. PAT declined 59% YoY to ₹110 crore, which was 66% below brokerage estimates. Motilal Oswal downgraded the stock to 'neutral' and cut FY27/FY28 earnings by 25%/28% respectively, expecting revenue/PAT to clock a CAGR of 58%/53% over FY26-28 on a low base.
Aequs Limited was the second biggest loser, down 7%, facing selling pressure as earnings failed to catch up with share price gains. According to Mint, the defence stock, which was up 30% YTD, posted a loss of ₹54.1 crore in Q4FY26 compared with a profit of ₹9 crore previously. Revenue grew 47% YoY to ₹367.1 crore, driven by continued strength in aerospace and scaling of the consumer segment. Axiscades was locked in the 5% lower price, while Paras Defence, Apollo Microsystems, Cochin Shipyard, BEL, BEML, HAL and Solar Industries traded with cuts.
Despite today's decline, the Nifty India Defence Index remains one of the best-performing indices this year with an 18% rise on a year-to-date basis, as reported by Mint. The index had gained 19% in 2025 and another 8.6% in 2024, the year of its inception. This performance comes despite volatile mainboard indices due to heavy foreign investor selling, oil price shock and rupee weakness. The government's massive export push, high capital expenditure by companies, robust order pipeline and strong demand due to regular military conflict escalation have supported sector interest.
Anshul Jain from Lakshmishree noted that the Nifty Defence Index is approaching a crucial technical inflection point, trading just below the neckline of a 241-day cup-and-handle formation near 9210. According to Mint, he finds the current trend as healthy consolidation before a potential breakout. A decisive breach and sustained close above 9210 would confirm the pattern and trigger fresh momentum buying, with the breakout projecting an immediate upside toward the 10,200 zone. On the positive side, GRSE, Data Patterns, Mazagon Dock and Dynamatic Technologies rose up to 5%, while GRSE, Data Patterns, Mazagon Dock and Dynamatic Technologies recorded up to 5% upside.
