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Defense stocks slide after US-Iran ceasefire breaks down
HAL, BEL, and Bharat Dynamics fell on Monday amid renewed US strikes on Iran and Iran warnings that raised fears of Strait of Hormuz disruptions to energy flows.
Defense shares including Hindustan Aeronautics (HAL), Bharat Electronics Limited (BEL), and Bharat Dynamics declined in Monday trading after Iran said its ceasefire with the United States had effectively broken down, according to LiveMint Markets.
HAL fell 0.58% to ₹4,474 apiece, while BEL dropped 0.78% and Bharat Dynamics declined 0.55%, with investors citing heightened concerns about possible disruption to energy shipments through the Strait of Hormuz.
The article said the US carried out its ninth straight night of strikes on Iran, aimed at weakening military capabilities used in attacks on commercial vessels and civilian mariners, and that Kuwait reported intercepting Iranian drone attacks.
It also noted that the US reinstated its blockade of the Strait of Hormuz, and that Iran has attacked vessels near the strategic waterway, disrupting the shuttle run operations used by Persian Gulf oil producers to move cargo, while Kuwait Petroleum Corp. said an Iranian strike damaged one of its oil facilities.