Rafale Maker Dassault Shares Fall 7%, Chinese Jet Maker Soars Amid India-Pakistan Tensions
New Delhi: Dassault Aviation, the French company that makes Rafale fighter jets, saw a big fall in its stock price. The shares dropped by 7 per cent on May 12, reaching around EUR 292. During the day, prices moved between EUR 291 and EUR 295.
This comes just days after Dassault's stock had gone up due to reports that India used Rafale jets in Operation Sindoor on May 7. The Indian Air Force reportedly targeted terrorist camps 200 km inside Pakistan without entering Pakistani airspace. Rafale jets were said to have used powerful weapons like SCALP cruise missiles and HAMMER bombs.
According to Live Mint, Dassault’s shares had risen 1.75 per cent on May 8 after the operation, closing at EUR 325.8. Since the start of the year, the stock had gone up by 66.7 per cent, from a December 31 close of EUR 195.90. But over the past five trading days, it has fallen more than 10 per cent.
Live Mint also reported that Dassault had strong financial results. The company posted annual sales of EUR 6.24 billion and a net profit of EUR 924 million. The entire French Aerospace & Defence sector has grown 17.7 per cent in the past year.
Market expert Anshul Jain from Lakshmishree Investment and Securities told Live Mint that the stock is under pressure due to rising India-Pakistan tension. He warned that if the stock falls below EUR 291, it may drop further to around EUR 260. He advised investors to stay cautious and manage risks tightly.
In other news, Dassault is also in focus because of a new deal with India. The country will buy 26 Rafale Marine jets for the Navy, costing around Rs 63,000 crore. These jets will be used on the Indian aircraft carrier INS Vikrant. India already uses 36 Rafale jets in the Air Force and has set up maintenance and training bases at Ambala.
Chinese Jet Maker Chengdu’s Shares Rise Sharply
While Dassault shares dropped, Chengdu Aircraft Corporation (CAC), the Chinese company that makes the J-10 fighter jet, saw a huge jump in its stock price. CAC’s shares rose by 20 per cent on May 12, reaching 95.86 Chinese Yuan. That’s a 60 per cent rise from the previous week.
On May 6, CAC’s shares were at 59.23 Yuan. They rose fast, hitting 88.88 Yuan in three days. Even after some profit booking, the shares closed at 79.88 Yuan on May 9, which is still 35 per cent higher.
The J-10C fighter jet, now used by Pakistan, is the most advanced version of the J-10 made by Chengdu. It first flew in 1998 and was deployed by China in 2003. The J-10C was upgraded in 2018 and exported to Pakistan in 2022.
Analysts say that the current rise in CAC’s stock is due to the India-Pakistan situation. As tensions rise, investors are turning to defense companies like CAC.
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