India, Aug. 27 -- Over the past five years, the Nifty India Defence Index, which comprises stocks of defence firms, skyrocketed by 770 per cent. In comparison, the Nifty 50 was up 118 per cent, and Nifty 500 a higher 142 per cent. Over the past three years, the respective jumps were more than 300 per cent, 4 2 per cent and 53 per cent. Even in the past 12 months, the Nifty Defence Index beat the market indices, although its rise was more minimal and subdued.

But the situation reversed in the past three months. While the broad indices witnessed minor growth, the defence index dropped by nine per cent. A similar trend was witnessed in the past one month. In July, for example, Mazagon Dock, Cochin Shipyard and others slumped up to 18% withi...