Why is China's J-10 jet maker Avic Chengdu Aircraft share price falling after Modi's strong message against terrorism?
Avic Chengdu Aircraft share price: The stock of Chinese defence company Avic Chengdu Aircraft, which manufactures the J-10 fighter jets used by Pakistan's air force against India, has come under selling pressure following the successful completion of India's Operation Sindoor and a strong-worded message by Prime Minister Narendra Modi regarding intolerance of any kind of terrorism.
Against this backdrop, Avic Chengdu Aircraft share price has seen a volatile few days, falling in two of the last three trading sessions. On Thursday, the Chinese defence stock opened at 87.74 yuan, down 3% from its last closing price of 90.35 yuan. It later extended losses, falling 6.30% to the day's low of 84.65 yuan.
In the three trading sessions, Avic Chengdu Aircraft share price has lost nearly 12% of its value.
However, despite the recent selloff, China's J-10 fighter jet maker's stock has rallied 43.83% in May alone amid the deployment of the jets by Pakistan's air force following increased tensions with India.
Barring the stellar rally in May, Avic Chengdu Aircraft share price has recorded back-to-back losses for four months, nosediving 19% during this period.
Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, believes that the Chinese defence stock is trading in an overbought zone and is likely to see limited gains in the near term.
'Avic Chengdu Aircraft is trading in the overbought zone on the weekly chart, indicating limited upside potential in the near term. The stock has established stiff resistance in the 90–95 range, where it has repeatedly failed to break out decisively. This price behaviour has led to a double top pattern, a classic bearish reversal signal, suggesting increased caution for traders,' Dongre said.
He sees immediate support for Avic Chengdu stock at the 76 mark. 'A closing below this level could trigger further correction, potentially dragging the stock down to the 60–65 range. Given the current technical setup, traders are advised to avoid fresh entries at the current levels and instead wait for a dip closer to the stronger support zone before considering long positions. Buying near the 60–65 range would offer a more favourable risk-reward opportunity,' advised Dongre.
The fall in Avic Chengdu Aircraft's share price, along with other Chinese defence stocks, comes following PM Modi's address to the nation, wherein he said that terror and trade, terror and talks, cannot go together.
PM Modi also warned Pakistan that India will not succumb to nuclear blackmail, adding that Operation Sindoor is India's new policy against terrorism and our unwavering pledge for justice.
"It is the new normal. We have only kept in abeyance our operations against Pakistan and the future will depend on their behaviour," Modi said in his address.
Operation Sindoor was India's response to the terror attack on civilians in Pahalgam, Kashmir, on April 22, which resulted in the death of 26 people. India carried out precision strikes on terror infrastructure early on May 7, following which Pakistan attempted to attack Indian military bases on May 8, 9 and 10.
India's defence ministry on Wednesday said the Indian Air Force bypassed and jammed Pakistan's Chinese-supplied air defence systems, completing the mission in just 23 minutes and demonstrating India's technological edge.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
India-Pakistan conflict: F-16 fighter jet maker Lockheed Martin share price gives zero return in one month
India-Pakistan conflict: India-Pakistan conflict: Shares of Lockheed Martin, the manufacturer of the F-16 fighter jets prized by Pakistan, have remained lacklustre over the past month, following India's Operation Sindoor. During the four-day military conflict with India, which took place in May, Pakistan deployed fighter jets like F-16 and J-10, drones and missiles, but its attempts were successfully thwarted by India's air defence and battle-proven systems. Analysts believe this could prove a setback for the American defence company as it could impact its order book. Against this backdrop, Lockheed Martin, the US defence giant, has remained largely unchanged during this period. The stock edged up just 0.97% in May. 'Even though the US gave F-16 fighter jets to Pakistan for other than war use, there are reports that Pakistan used Lockheed Martin Corp's F-16 and China's J-10 fighter jets during Operation Sindoor last month. However, neither could breach India's air defence system, which would be a massive setback for China and the US,' explained Avinash Gorakshkar, Head of Research at Profitmart Securities. The market is expecting some hit on the order book of these defence companies in the upcoming quarters, said Goranshakr, explaining the weak returns in shares of Lockheed Martin.
Time of India
an hour ago
- Time of India
China criticises US for its computer chip moves and for threatening student visas
China blasted the US on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas . "These practices seriously violate the consensus" reached during trade discussions in Geneva last month, the Commerce Ministry said in a statement. That referred to a China-US joint statement in which the United States and China agreed to slash their massive recent tariffs, restarting stalled trade between the world's two biggest economies. But last month's de-escalation in President Donald Trump's trade wars did nothing to resolve underlying differences between Beijing and Washington and Monday's statement showed how easily such agreements can lead to further turbulence. The deal lasts 90 days, creating time for US and Chinese negotiators to reach a more substantive agreement. But the pause also leaves tariffs higher than before Trump started ramping them up last month. And businesses and investors must contend with uncertainty about whether the truce will last. Live Events US Trade Representative Jamieson Greer said the US agreed to drop the 145% tax Trump imposed last month to 30%. China agreed to lower its tariff rate on US goods to 10% from 125%. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The Commerce Ministry said China held up its end of the deal, canceling or suspending tariffs and non-tariff measures taken against the US "reciprocal tariffs" following the agreement. "The United States has unilaterally provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations," while China has stood by its commitments, the statement said. It also threatened unspecified retaliation, saying China will "continue to take resolute and forceful measures to safeguard its legitimate rights and interests." And in response to recent comments by Trump, it said of the U.S.: "Instead of reflecting on itself, it has turned the tables and unreasonably accused China of violating the consensus, which is seriously contrary to the facts." Trump stirred further controversy Friday, saying he will no longer be nice with China on trade, declaring in a social media post that the country had broken an agreement with the United States. Hours later, Trump said in the Oval Office that he will speak with Chinese President Xi Jinping and "hopefully we'll work that out," while still insisting China had violated the agreement. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US," Trump posted. "So much for being Mr. NICE GUY!" The Trump administration also stepped up the clash with China in other ways last week, announcing that it would start revoking visas for Chinese students studying in the U.S. US campuses host more than 275,000 students from China. Both countries are in a race to develop advanced technologies such as artificial intelligence, with Washington seeking to curb China's access to the most advanced computer chips. China is also seeking to displace the US as the leading power in the Asia-Pacific, including through gaining control over close US partner and leading tech giant Taiwan.
Mint
2 hours ago
- Mint
JSW Steel, Vedanta, Tata Steel and other metal stocks drop up to 2% as Trump doubles tariffs to 50%
Indian metal stocks started June on a sombre note, with the Nifty Metal index declining 1.6% in early trade on Monday, June 2. Fourteen out of fifteen constituents opened in the red, trading with cuts of up to 2%. Lloyds Metals & Energy, JSW Steel, Welspun Corp, Vedanta, Tata Steel and Steel Authority of India emerged as the top laggards. While it's not just metal counters facing selling pressure on Dalal Street today, the red wave swept across the board as global trade tensions resurfaced, triggering risk-off sentiment among investors. US President Donald Trump last week intensified trade tensions, announcing he would double tariffs on steel and aluminum imports and accusing China of violating a prior agreement to ease tariffs. Speaking at a rally in Pennsylvania, Trump said the US would raise steel tariffs from 25% to 50% starting next week while highlighting the partnership between Japan's Nippon Steel and US Steel. Later, taking to his Truth Social account, Trump wrote, 'It is my great honor to raise the tariffs on steel and aluminium from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!' The announcement comes amid an ongoing legal battle over the legality of some of Trump's tariff policies. An appeals court has allowed the case to proceed after the Court of International Trade ordered a halt to the taxes. Trump accused China of violating a tariff truce reached in early May—a claim Beijing rejected, countering with accusations of US wrongdoing. China, the world's largest steel producer and exporter, has seen its steel exports to the US decline significantly since the 25% tariff was imposed in 2018. While India's exports of steel and aluminium to the US are limited, the drop in metal stocks occurred amid growing concerns that a potential rise in tariffs could impact global metal demand. A call between Trump and Chinese President Xi Jinping is expected later this week in a possible effort to ease trade tensions. On the economic front, Chinese factory activity data contracted at a slower pace in May than the month prior, also aiding the selling pressure in metal stocks today. As tariff headlines once again dominate global markets, Asian indices opened in the red on Monday, with the Nifty 50 and Sensex falling nearly 1% in early trade. Rising geopolitical tensions between Ukraine and Russia also pushed investors toward safe-haven assets, leading to a sharp decline in equities. According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market structure currently supports a continuation of the ongoing consolidation phase. He noted that global headwinds—particularly renewed tariff concerns—are likely to restrain any breakout rally. However, strong domestic tailwinds may offer support at lower levels. He added that the recent announcement of 50% tariffs on steel and aluminium by President Trump signals ongoing uncertainty in the global trade environment, which may act as a significant headwind for markets. On the domestic front, however, factors such as better-than-expected Q4 GDP growth at 7.4%, improving trends in consumption and capital expenditure, low inflation, and the prospect of continued rate cuts present a solid foundation for sustained economic growth in FY26. The only near-term challenge, he pointed out, is weak earnings growth. If leading indicators begin to reflect a recovery, the market has a strong chance of breaking out of its current range and moving higher. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
