Chinese defence stocks tank up to 9% today; details here

A majority of Chinese defence company shares recently logged a sharp uptick amid an escalation in the India-Pakistan conflict. But, the upmove seems to have hit a bump following the ceasefire announcement between the two neighbouring nations.

Shares of China's J-10C fighter jet maker Avic Chengdu Aircraft Co. were among the biggest gainers. However, the stock recorded a sharp decline on Tuesday, sliding around 9 per cent.

Shares of China State Shipbuilding Corporation, which builds military and civilian vessels, slipped over 4 per cent. Military electronic component maker Zhuzhou Hongda Electronics Corp Ltd was down more than 6 per cent.

Pakistan imports the bulk of its defence equipment, including J-10C fighter jets. Imports from the country accounted for 82 per cent of Pakistan's stock from 2019-2023, compared with 51 per cent during 2009-2012.

Meanwhile, India's defence stocks were on a roll today after Prime Minister Narendra Modi emphasised the need for greater military self-reliance. In his first address to the nation after Operation Sindoor, Modi warned Pakistan that India will not succumb to nuclear blackmail. He described Operation Sindoor as India's new policy against terrorism and an unwavering pledge for justice.

The Prime Minister said the operation is the new normal and that India had only kept its actions against Pakistan in abeyance, with future steps depending on Pakistan's behaviour. He reiterated that terror and trade cannot go together, echoing US President Donald Trump's statement that trade with India and Pakistan will depend on ending the conflict.

Shares of Hindustan Aeronautics Ltd (HAL), Bharat Dynamics Ltd and Bharat Electronics Ltd (BEL) surged up to 8 per cent. BDL soared 7.81 per cent to hit a high of Rs 1,692.35. HAL climbed 4.32 per cent to Rs 4,631.35. BEL advanced 4.28 per cent to Rs 336.60. Zen Technologies advanced 4.3 per cent to Rs 1,539.95. Data Patterns (India) Ltd added 2.45 per cent to Rs 2,442.75. Astra Microwave Products Ltd rose 2.79 per cent to Rs 892.15.