Defence stocks cool off amid Iran-Israel ceasefire: Nifty Defence down 2%; GRSE, BEML top losers

With Iran and Israel agreeing to a ceasefire, defence stocks cooled off on Tuesday, June 24, as investors turned towards profit booking.

US President Donald Trump on social media site ‘Truth Social’ said Israel and Iran had agreed to a “complete and total ceasefire” soon after Iran launched limited missile attacks Monday on a US military base in Qatar, retaliating for the American bombing of its nuclear sites over the weekend.

"On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end what should be called 'THE 12 DAY WAR'," Trump wrote on his Truth Social site.

Iranian state-run media also said that the ceasefire with Israel came into effect following five waves of missile attacks on Israeli-occupied territories.

“The ceasefire is now in effect. Please do not violate it!” the US President posted on the social media platform.

Following the ceasefire development, the Nifty Defence index was trading down 2.23% at the 8,875.45 level. After opening at 9,157.50, it had touched an intraday low of 8,856.60.

So far this year, the index has gained over 38%, while over a year’s period, the Nifty Defence sector has surged 26%.

Defence stocks came into the limelight post-rising tensions between India and Pakistan after an attack in Pahalgam. Global conflicts (Russia-Ukraine, Israel-Hamas) also made defence stocks attractive to the investors. 

India's defence exports have risen to ₹23,622 crore in 2024-25 from ₹1,940 crore in 2014-15, the union minister had said.

Meanwhile, in a note on Tuesday, Jefferies said that India’s FY26 defence capex started on a strong note with a 122% year-on-year rise in April. The country’s defence spend rose 25% year-on-year in March 2025 to achieve the FY25 revised estimate of 3% growth.

“Post 'Operation Sindoor' in May 2025, the government focused on putting India-made defence equipment on the global stage for higher export opportunities,” it further said.