13 May 2025 : The stock of Dassault Aviation, the maker of the Rafale jets, which were reportedly used by India during ‘Operation Sindoor’ against Pakistan, has dropped sharply in the European stock market. Dassault Aviation hit a 7 per cent intraday drop on Monday, reaching EUR 292. Throughout the day, the stocks kept fluctuating from EUR 291 to EUR 295.
Meanwhile, shares of Chengdu Aircraft Corporation (CAC), the Chinese aerospace company behind the J-10 fighter jets, inducted by Pakistan, surged by 20 per cent on May 12. This marked a significant rise in investor confidence for CAC, with its stock reaching Chinese Yuan 95.86, a 60% increase from the previous week.
Live Mint reported that Dassault Aviation shares had surged following Operation Sindoor, a precision strike carried out by the Indian Air Force on May 7, targeting terrorist infrastructure located around 200 kilometres within Pakistani territory.
Some reports claimed that India used Rafale fighter jets armed with SCALP cruise missiles and HAMMER munitions, all while avoiding a violation of Pakistani airspace.
The stock’s strong performance aligns with solid financial results. Dassault Aviation posted annual sales of EUR 6.24 billion and a net profit of EUR 924 million, while the broader French Aerospace & Defence sector grew by 17.7 per cent over the past year, Live Mint reported.
However, Dassault Aviation’s stock rose 1.75% on May 8 to close at EUR 325.8 on the Euronext Paris exchange, bringing its year-to-date gain to 66.7% from its December 31 close of EUR 195.90.
However, Dassault Aviation stock has fallen over 10 per cent in the past five trading sessions.
Summary: Shares of Rafale manufacturer Dassault dropped, while China’s CAC, producer of the J-10 fighter jet, experienced a significant stock price increase.