The recent military escalation between India and Pakistan, particularly following the Indian armed forces’ Operation Sindoor, has heightened investor interest in France’s Dassault Aviation shares and China’s AVIC Chengdu Aircraft shares.

India launched Operation Sindoor on May 7, during which the Indian Air Force (IAF) reportedly deployed Rafale jets to strike terrorist camps deep inside Pakistani territory, utilizing SCALP and HAMMER missiles. Dassault Aviation is the manufacturer of the Rafale fighter jets.

Conversely, Pakistan’s Deputy Prime Minister Ishaq Dar confirmed that the Pakistan Air Force responded using J-10 fighter jets, manufactured by AVIC Chengdu Aircraft.

Stock Performance: Dassault Aviation vs AVIC Chengdu

Dassault Aviation share price has rallied over 3% in the past four sessions, buoyed by a surge in investor sentiment following Prime Minister Narendra Modi’s visit to the Adampur Air Base. Backed by an S-400 missile defence system, Modi lauded the successful execution of Operation Sindoor, sending a strong message to Pakistan.

In contrast, AVIC Chengdu shares have declined over 10% during the same period, as geopolitical tensions and increased uncertainty weighed on Chinese defence stocks after PM Modi’s remarks.

Year-to-date in 2025, Dassault Aviation shares have delivered an impressive 57% return, supported by robust investor confidence and growing exports of Rafale jets.

“India and France recently signed a major defence deal to procure 26 naval variants of the Rafale fighter. Whereas, AVIC Chengdu, part of China’s AVIC conglomerate has also given high returns post its listing with gains of more than 30% from listing rate while, in recent days the stock has been volatile due to geopolitical tensions and misinformation, due to which Chinese stocks faced sell-off,” said Dr. Ravi Singh, SVP – Retail Research at Religare Broking Ltd.

For investors seeking exposure to the global defence sector, Singh notes that Dassault Aviation shares currently appear to be the more attractive option, considering the prevailing circumstances.

Technical View

From a technical standpoint, Dassault Aviation shares demonstrate clear relative strength compared to AVIC Chengdu, analysts said.

“While Chengdu share price remains in consolidation, Dassault stock is already showing strong momentum. A breakout above €316 will likely act as a trigger, propelling the stock toward the €375 level. Given the setup, Dassault presents a more favorable risk-reward profile for long trades at this stage,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

Jain added that until clearer signals emerge from AVIC Chengdu, traders with a bullish view should consider prioritizing Dassault Aviation shares.

Disclaimer: 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.