Shares of China’s Avic Chengdu Aircraft, manufacturer of the J-10 fighter jets reportedly used by Pakistan, plunged by over 9% on Tuesday, following Indian Prime Minister Narendra Modi’s decisive address to the nation declaring the success of Operation Sindoor.
Avic Chengdu Stock Crash
In intraday trade, the stock fell as much as 9.31% to 86.93 yuan before recovering slightly to 88.66 yuan, down 7.51% by 1:15 PM IST. The sharp correction comes on the heels of a recent rally where Avic Chengdu had gained over 60% since Operation Sindoor launched on May 6.
PM Modi’s nationally televised speech late Monday evening delivered a firm message against cross-border terrorism and issued a stark warning to Pakistan, asserting that “India will not bow to nuclear blackmail.” He underscored the effectiveness of India’s air defence, stating that Pakistani drones and missiles were “destroyed like straws” mid-air. He hailed domestically developed weaponry and declared that Operation Sindoor marked a “new normal” in India’s strategic posture.
Following the speech, Indian defence stocks such as Bharat Dynamics, BEL, and HAL witnessed a 4-7% surge, while Chinese defence counters reeled under selling pressure.
Market experts noted the movement as profit booking after a steep rally. Anshul Jain, Head of Research at Lakshmishree Investment, stated the stock may retest its breakout level of 73 yuan. “If it stabilizes around this level, it could offer a fresh entry point for investors,” he said.
The fall in Avic Chengdu stock also comes amid broader geopolitical jitters and investor caution around military-linked firms, especially in light of India’s assertion that terrorism and trade cannot co-exist.
While the Pakistan Stock Exchange (KSE-100) extended its gains for a third consecutive day on hopes of ceasefire de-escalation, the India-China defence dynamics appear to be tilting more heavily toward domestic sentiment and strategic signalling.
As the dust settles from Operation Sindoor, analysts and investors alike are watching how regional defence suppliers and their share prices respond to India’s assertive doctrine and the global reaction it sparks.
Also Read: $1 Billion Loan Sanctioned for Pakistan by IMF amidst Ind-Pak Tensions
