India’s Rafale supplier Dassault crashed 10.93%, Pakistan’s J-10C supplier Chengdu soared 61.65%

The stock prices of JF-17 and J-10C Maker have increased by 61.65%, whereas Indian Rafale shares are still declining.

The market sentiment for defence manufacturers has changed significantly as a result of the recent aerial confrontation in which Pakistan is said to have shot down one or more Indian Rafale jets.

Following the event, shares of Chengdu Aircraft Corporation (CAC), which produces the JF-17 and J-10C fighter jets, have increased by 63% in the last five days, indicating that investors have a high level of faith in Chinese defence technology. The shares of CAC were trading at roughly CNY 95.86 on the Shenzhen Stock Exchange, representing an intra-day rise of nearly CNY 16 (or 20%).

In sharp contrast, Dassault Aviation, the French firm that manufactures India’s Rafale fighter jets, has seen a roughly 10.93% decline in share price, with its stock currently trading at EUR 295 on the Paris Stock Exchange.

The Indian Air Force admitted during a joint press conference of India’s defence officials that losses sustained in recent air combat were “part of combat.” Analysts have interpreted this as confirmation of significant damage, including to Rafale jets, which seems to be having a significant impact on investor sentiment.

Read more: China’s jets and missiles make Pakistan a winner over India

The Indian Air Force (IAF), without providing specifics, acknowledged the loss of assets during air combat, including Rafale jets, during the joint press conference of India’s defence authorities on Sunday.

Although the Indian Defence Ministry has not yet disclosed the precise number of casualties caused by the premature operation, the statement that “losses are part of combat” has been widely taken as confirmation that the IAF lost greatly, including the loss of Rafale fighter jets.

This disparity in share prices demonstrates the impact that battle outcomes and geopolitical developments have on financial markets, particularly in the defence industry. Companies that investors believe have a technology advantage and strong combat performance are gaining support, while those that are perceived as being at risk in the current conflict dynamic are seeing a decline in market confidence.

A few Indian sources and reality-checkers dispute claims of Rafale losses, suggesting no evidence exists and that Dassault’s inventory dip was a minor 1% correction, not a 6% crash. Moreover, posts on X and a few reports claim Indian forces downed Pakistani jets, such as two JF-17s and an F-16, which could temper CAC’s gains if verified. Those conflicting narratives highlight the need for caution, as marketplace reactions may be driven by unverified reviews and propaganda. 

The stock movements reflect broader geopolitical tensions and market sensitivity to army outcomes, but investors should verify claims through official statements and financial data, as misinformation can exaggerate developments.