Avic Chengdu share price: The high-flying Chinese defence company, Avic Chengdu Aircraft, shares witnessed a heavy selloff on Tuesday, May 13, following a strong-worded message by Prime Minister Narendra Modi a day ago on the successful completion of Operation Sindoor.
Following his message, shares of Chinese defence companies faced a heavy selloff today, even as Indian defence stocks rallied. Avic Chengdu Aircraft is the maker of J-10 fighter jets, which Pakistan Deputy Prime Minister Ishaq Dar said were used by its air force.
Avic Chengdu Aircraft share price crashed as much as 9.31% to 86.93 yuan in intraday trade today. As of 1.15 pm IST, China’s Avic Chengdu Aircraft stock was down 7.51% at 88.66 yuan.
However, since the launch of Operation Sindoor on the night of May 6, the Chinese defence stock Avic Chengdu Aircraft has surged over 60% in a matter of days.
PM Modi’s strong message to Pakistan, world
PM Modi warned Pakistan that India will not succumb to nuclear blackmail and sent a clear message to the world: terror and trade, terror and talks cannot go together.
Hailing India’s air defence system, PM Modi said, “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 further added 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.
Avic Chengdu Aircraft share price outlook
Anshul Jain, Head of Research at Lakshmishree Investment, said that China’s Avic Chengdu Aircraft share price broke out of its base at 73 Yuan per share and surged quickly to 97.55. Following the sharp rally, profit booking has set in, and a retest of the breakout zone around 73 Yuan per share appears likely, said Jain.
“This pullback could offer a buying opportunity if the stock shows signs of stability and renewed demand at that level. Traders should closely watch price action, which is near 73 Yuan per share, for a potential reversal setup with defined risk,” Jain added.
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