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Defense stocks fall amid investor revaluation
Defense stocks slid 2% on Thursday, snapping a three-month surge fueled by global tensions and hopes for bigger defense budgets.
Investors are now locking in profits and rethinking whether prices got too high.
Bharat Dynamics leads the fall
Bharat Dynamics led the fall, dropping 4.8% after a 'neutral' rating from Motilal Oswal.
Solar Industries, Zen Technologies, Data Patterns, Astra Microwave, and Garden Reach also lost over 2.5%.
The sell-off shows many investors decided it was time to take some gains off the table.
Investors are worried about overpaying
With tensions easing a bit and defense stocks trading at around 60 times earnings—way above their usual range—investors are worried about overpaying.
That's sparked some caution and profit-taking across the sector.