CHENNAI: Shares of Dassault Aviation, the maker of Rafale fighter jets, rose for the second consecutive day on Wednesday, gaining 1.47% during the trading session. This followed a sharp 7% decline on Monday. The stock climbed to an intraday high of €304.40 on the Paris Stock Exchange in early trading, edging closer to its record high of €332.20. By mid-session, the stock was trading at €302.40, up 0.47%.
On Tuesday, Dassault Aviation had rebounded by over 3%, recovering some of Monday’s steep losses. Despite recent volatility, market experts see bullish signs. Analysts point out that the stock has formed a bullish hammer pattern on the monthly chart—an encouraging signal for potential upside. Many expect the stock to test its record highs in the near term.
Impact of India-Pakistan Tensions
The stock’s recent movements have been influenced by geopolitical developments. Dassault shares surged after the Indian Air Force executed "Operation Sindoor" on May 7—a precision strike against terrorist infrastructure approximately 200 kilometres inside Pakistani territory. Reports suggest that Rafale jets were deployed in the mission, armed with SCALP cruise missiles and HAMMER precision munitions, and successfully completed the operation without violating Pakistani airspace.
Stock Performance Overview
Despite recent gains, Dassault Aviation shares have declined over 10% in the past five trading sessions. Nevertheless, the stock has delivered stellar long-term returns, rising over 347% in the past five years, solidifying its reputation as a multibagger.
According to analysts the heightened volatility driven by India-Pakistan tensions has contributed to recent downward pressure on the stock.