Dassault Aviation Shares Plunge Amid India-Pakistan Tensions; China's CAC Stock Soars

Dassault Aviation Dips on India-Pak Tensions, While China’s CAC Surges

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: May 13, 2025

Summary: Indian Rafale jets were hit in Operation Sindoor, leading to a drop in Dassault Aviation's stock, while shares of China's CAC, maker of Pakistan's J-10 jets, rose.

The Indian Air Force's deployment of Rafale fighters in Operation Sindoor raised investor fears amid geopolitical tensions, and on May 13, 2025, Dassault Aviation's stock plunged 7% to €292 as tensions between India and Pakistan intensified.

Dassault's stock went down after going up because of Operation Sindoor, where India supposedly hit terrorist sites in Pakistan using Rafale jets with special bombs and missiles.

Conversely, China's Chengdu Aircraft Corporation (CAC), which manufactures the J-10 fighter jets utilized by Pakistan, saw its shares soar by 20% on May 12, reaching ¥95.86—a 60% increase from the previous week.

The geopolitical developments and unverified reports of Rafale losses are cited by market analysts as the reasons for Dassault's stock volatility. Increased volatility brought on by India-Pakistan news has caused the stock to decline, according to Anshul Jain, head of research at Lakshmishree Investment and Securities.

Despite the drop, the stock's increased, and this displayed the investor confidence in Dassault Aviation's defence initiatives and performance. The stock has risen 66.7% this year since closing at €195.90 on December 31.

The different stock trends of Dassault Aviation and CAC highlight how feelings in the market and defense companies are affected by global political issues.