Overview

• Defence stocks, including Cochin Shipyard, Paras Defence, IdeaForge, and GRSE, fell 5–7% on May 20, marking the second day of declines.
• The Nifty India Defence index dropped 1.4%, reflecting cooling momentum after a nearly 50% sectoral market cap surge since February 2025.
• Promoters of Paras Defence sold 3.3% of the company’s equity, adding pressure to the stock, which had risen 53% in a month.
• BSE and NSE placed Cochin Shipyard, Paras Defence, and GRSE under the Additional Surveillance Measure (ASM) framework due to heightened volatility.
• Despite short-term corrections, analysts remain optimistic about the sector’s long-term prospects, supported by rising defence budgets and Make in India initiatives.