NEW DELHI: Indian Prime Minister Narendra Modi visited the Adampur air force base, near Jalandhar in East Punjab, on Tuesday where he reiterated the “new normal” of military action against Pakistan, but aware that the stocks of the company that manufactures the fabled Rafale jets his pilots used in the recent duel had plummeted.

The Hindustan Times reported on Tuesday that while Rafale shares suffered losses, the stocks of Chinese warplane manufacturers Avic Chengdu had soared after the military engagement between Indian and Pakistani pilots last week.

Dassault Aviation’s stock plummeted seven per cent amid fluctuating prices, following reports of India using Rafale jets in Operation Sindoor against Pakistan, Hindustan Times said.

It said the stock of Dassault Aviation, the maker of the Rafale jets reportedly used by India during ‘Operation Sindoor’, dropped sharply in the European stock market. “Dassault Aviation hit a seven per cent intraday drop on Monday, reaching 292 euros. Throughout the day, the stocks kept fluctuating from 291 euros to 295 euros,” the newspaper said.

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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 Monday. “This marked a significant rise in investor confidence for CAC, with its stock reaching Chinese Yuan 95.86, a 60 per cent increase from the previous week,” the Indian daily reported.

The business daily Live Mint had earlier reported that Dassault Aviation shares had surged following Operation Sindoor, amid claims by the Indian air force that it had carried out precision strikes deep inside Pakistan on May 7.

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 6.24 billion euros and a net profit of 924 million euros, 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 per cent on May 8 to close at 325.8 euros on the Euronext Paris exchange, bringing its year-to-date gain to 66.7 per cent from its Dec 31 close of 195.90 euros.

But Dassault Aviation’s stock has fallen over 10 per cent in the past five trading sessions.

Anshul Jain, head of research at Lakshmishree Investment and Securities, told the Mint that heightened volatility driven by India-Pakistan news has sent the stock into a downward trend.

“Dassault Aviation share price has tested its swing low support zone of 292–291. A decisive break below this level could quickly drag the stock toward the 260 zone. Caution is advised for long positions. Traders should watch for a breakdown confirmation before considering fresh shorts, as sharp moves are likely. Defensive positioning and tight risk management are key in this environment,” Jain said.

India and France recently signed a key deal to procure 26 naval variants of Rafale fighter jets at a cost of around Rs63,000 crore (Rs630bn) for the Indian Navy.

India is procuring the jets from French defence major Dassault Aviation for deployment on board aircraft carrier INS Vikrant.

The Cabinet Commitee on Security (CCS), headed by the Indian prime minister, cleared a government-to-government deal for 22 single-seat Rafale M fighters and four twin-seat trainers this month, Hindustan Times had earlier reported.

The Indian Air Force is already operating 36 Rafale fighters with Hammer and Scalp missiles. India has base maintenance depots, repairs, training and simulators for Rafales at its Ambala air base.

Published in Dawn, May 14th, 2025