Modi effect: Shares of J-10 Chinese fighter jet maker crash
What's the story
Chinese defense firm Avic Chengdu Aircraft, the maker of J-10 fighter jet, witnessed a major plunge in its stock value (down 9%) today.
The decline was prompted by Prime Minister Narendra Modi's speech about the successful execution of Operation Sindoor.
However, despite this loss, the company's shares have recorded an impressive rise of over 60% since the operation commenced on May 7.
Market reaction
Indian defense stocks surged
Following Modi's speech, shares of several Chinese defense firms witnessed a major selloff. This was even as Indian defense stocks witnessed an upswing. To note, the J-10 fighter jets were used by Pakistan during its recent skirmish with India.
Expert
Analysis of Avic Chengdu Aircraft's stock performance
Anshul Jain, Head of Research at Lakshmishree Investment, gave insights into the stock performance of China's Avic Chengdu Aircraft.
Jain observed that the stock price broke out of its base at CNY 73 per share and surged quickly to CNY 97.55.
After this sharp rally, profit booking has set in and a retest of the breakout zone around CNY 73 per share seems likely.
Message
Modi's warning to Pakistan
In his address, Modi gave a stern warning to Pakistan that India will not bow down to nuclear threats.
He also made a statement that "terror and trade, terror and talks cannot go together."
Modi praised India's air defense system for its effectiveness against Pakistani drones and missiles during Operation Sindoor.