Defence stocks, July 29 -- After a sizzling rally between April and June in the wake of India's Operation Sindoor and growing order book, defence stocks have taken a back seat lately. The Nifty India Defence index has lost 11% in the last one month, with all 18 index constituents in the red.

Many prominent and high-flying defence stocks like Cochin Shipyard, Garden Reach Shipbuilders, Mazagon Dock, Zen Technologies and Paras Defence, among others, have seen a high double-digit decline of 15-19% in their share prices in the last one month. Meanwhile, several other names like Hindustan Aeronautics (HAL), BEML and BEL are down 8-9% during this period.

Analysts largely attribute the reversal in trend of the defence stocks to valuation conce...