Chinese Jet Maker Company Share Price Crashes 9.5% After PM Modi’s Address to Nation

NDC DESK

When Modi Speaks, Markets Listen! .Avic Chengdu Tumbles After Operation Sindoor
In a week when Prime Minister Narendra Modi drew a firm line between terrorism and diplomacy, Chinese defence markets blinked.

Avic Chengdu Aircraft, the Chinese giant behind the J-10 fighter jets reportedly used by Pakistan has seen its share price nosedive by over 9.4% since Monday’s peak. This follows Modi’s powerful address to the nation on Operation Sindoor, where he declared, “Terror and trade, terror and talks cannot go together.” The market clearly understood him loud and clear. Mind it! This was understood not just in India.

On Tuesday, Avic Chengdu’s stock fell 7% to close at 88.74 yuan, and by Wednesday morning (May 14), it hovered around 90.65 yuan. The sharp selloff wiped off significant gains made during the post-Operation Sindoor euphoria, where the stock had earlier rallied over 60% since May 6.

PM Modi’s message was direct. “The world saw how Pakistan’s drones and missiles fell like straws in front of India. India’s strong air defence system destroyed them in the sky itself,” he said, praising the forces and underlining India’s military edge. He termed Operation Sindoor as the “new normal”, a signal to both Islamabad and global powers that India will no longer play nice in the face of terror provocations.

The J-10 jets that Pakistan reportedly deployed in retaliation became part of the collateral damage in investor sentiment. Pakistan’s Deputy Prime Minister Ishaq Dar’s admission that these Chinese-made jets were used in their air strikes didn’t help Avic Chengdu’s fortunes either.
While Chinese defence stocks bore the brunt, Indian defence stocks rallied! Perhaps the only time a market mirrors morale.

On the technical front, analysts like Ganesh Dongre of Anand Rathi warn that Avic Chengdu is now in overbought territory. “The stock has formed a double top around 90–95 yuan a classic bearish reversal. A better buying opportunity could emerge near 65–70 yuan,” he said.
Anshul Jain of Lakshmishree Investment added, “After the breakout at 73 yuan, the rally to 97.55 was too sharp. Now a pullback toward the breakout zone is likely. Watch for demand around 73.”

In short, investors are watching the charts. But the markets? They’re watching Modi.
When the Prime Minister said nuclear blackmail won’t work and justice is non-negotiable, the message wasn’t just for Pakistan. It reached the Shanghai stock exchange too.