Market experts attributed the weakness to a combination of valuation concerns, liquidity pressures and profit booking.
MTAR Technologies has revised revenue guidance from 30% to 35% for FY26 compared to initial guidance of 25%, driven by robust order inflows scheduled for execution within the fiscal year.
At 01:40 PM on Friday; Nifty India Defence index was the top gainer among sectoral indices, up 0.85 per cent as compared to 0.43 per cent decline in the Nifty 50.
NSE India Defence index was quoting higher for the third straight trading day, surging 3.7% during the period, as against 0.14% decline in the Nifty 50.
The stock price of MTAR Technologies hit a two-year high at ₹2,473.95, and has more-than-doubled or zoomed 115 per cent from its 52-week low of ₹1,152 touched on April 7, 2025.
At 10:20 AM; Nifty India Defence index was up 1.5 per cent, as compared to 0.35 per cent rise in Nifty 50 in Friday's trade.
In the past five weeks, the stock price of MTAR Technologies - a smallcap aerospace & defence company - has zoomed 52 per cent on expectation of strong earnings.
At 10:32 AM; Nifty India Defence index was up 2.6 per cent, as compared to 0.28 per cent rise in Nifty 50.
MTAR Technologies shares climbed 5.1 per cent on Wednesday, after the company received orders worth ₹386.06 crore in the Clean Energy Sector- fuel cells segment
The sharp rally in defence stocks came after the Defence Acquisition Council (DAC), headed by Defence Minister Rajnath Singh, approved 10 major capital acquisition proposals on Thursday.