Dassault Aviation, the French aerospace giant behind the Rafale fighter jets, saw its shares plunge 7% intraday on Monday following reports that India used Rafale aircraft in ‘Operation Sindoor’ against Pakistan.
The stock fluctuated between EUR 291 and EUR 295, hitting a low of EUR 292 in European markets.
The sharp decline came despite the stock’s recent strong performance after the Indian Air Force’s precision strikes on May 7, targeting terror hubs roughly 200 km inside Pakistani territory. Reports suggest that SCALP cruise missiles and HAMMER munitions were deployed from Rafales, with India managing to avoid violating Pakistani airspace.
Meanwhile, China’s Chengdu Aircraft Corporation (CAC), which manufactures the J-10 fighter jets recently inducted by Pakistan, enjoyed a 20% surge in its stock on May 12. CAC shares hit CNY 95.86, marking a 60% increase over the previous week—reflecting a major boost in investor sentiment.
Despite Monday’s dip, Dassault Aviation had previously gained 1.75% on May 8, closing at EUR 325.8, with a 66.7% year-to-date rise from its December 31 close of EUR 195.90. However, the recent volatility has caused the stock to fall over 10% in the past five sessions.
According to Live Mint, Dassault Aviation reported annual sales of EUR 6.24 billion and a net profit of EUR 924 million, while France’s overall aerospace and defence sector has grown 17.7% over the past year.
Though short-term turbulence has hit Dassault’s stock, market watchers suggest the operational success of Rafales in real conflict zones like Operation Sindoor could strengthen the aircraft’s credibility and long-term demand globally.
