BEML, GRSE, Zen Tech Share Price Fall Over 6% as Israel-Iran Ceasefire Hits Defence Stocks

Defence-related stocks saw a sharp decline on Tuesday, June 24, 2025, following news of a potential ceasefire between Israel and Iran. After a strong rally in previous weeks due to geopolitical tensions, investors began to book profits as hopes of de-escalation emerged.

Seventeen out of the eighteen stocks in the Nifty Defence index opened lower, with losses of up to 6% in early trading. The overall index fell by 2.2%, marking its second-largest one-day drop for June so far.

BEML and GRSE Among the Top Losers

BEML Ltd led the fall, tumbling 6.4% to an intraday low of ₹4,481. Garden Reach Shipbuilders & Engineers Ltd (GRSE) followed with a 5.2% drop to ₹3,313 per share. Other major defence stocks such as Mishra Dhatu Nigam, Astra Microwave, Bharat Dynamics, Data Patterns, Zen Technologies, Paras Defence, Unimech Aerospace, and Cochin Shipyard also saw declines of over 2% during the session.

Ceasefire Between Israel and Iran Announced

The decline in defence stocks comes after former U.S. President Donald Trump announced a temporary ceasefire between Israel and Iran. According to his post on Truth Social, both countries agreed to halt attacks for 12 hours, and if peace continues, the conflict would officially be considered over after 24 hours.

While Israel has not publicly confirmed the ceasefire, Iran denied agreeing to a U.S.-brokered deal but indicated willingness to stop hostilities. This has contributed to cooling investor sentiment in defence-related equities.

Global Markets React to Tensions Easing

Global equity markets, which had recently been affected by the escalating conflict in the Middle East, found some relief following the ceasefire news. Although Iran reportedly fired missiles at a U.S. military base in Qatar, the U.S. intercepted them successfully, and there were no reported injuries. This reduced the overall risk sentiment and led investors to move away from defence stocks.

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Conclusion

With the signs of peace between Israel and Iran, defence stocks, which had gained in response to earlier geopolitical tensions, faced broad-based selling on June 24. As calm returns to the region, the market is seeing a shift from safe-haven sectors like defence back to broader equities. Investors are now watching closely to see if the ceasefire holds and how it continues to impact global and domestic markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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