Cochin Shipyard, ideaForge, GRSE and other defence stocks fall up to 7% as post-Sindoor rally unwinds

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.
Operation Sindoor rally meets resistance
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.
Long-term outlook intact
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.
Also read |
Defence stocks enter overheated zone, says Share.Market expert, suggests strategy for GRSE, Cochin Shipyard & 3 others
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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