New Delhi, Aug. 30 -- Defence stocks in India are reeling under pressure after months of excessive buying, with the Nifty India Defence index down nearly 5% in August after a 12% fall in July.

Defence stocks have declined up to 12% in just one month, with Bharat Dynamics emerging as the worst-performing index constituent. Mishra Dhatu has seen over 10.5% decline, while stocks like Hindustan Aeronautics and Bharat Electronics have shed 4%.

This correction comes on the back of a stellar four-month rally as investors book profits. Meanwhile, a dampened Indian stock market sentiment following the imposition of tariffs by US President Donald Trump of 50% also weighed down on all corners of the markets, including defence.

However, geopolitic...