India-Pakistan tensions: Why is Dassault Aviation share price under radar for European stock market investors?

India-Pakistan tensions: Dassault Aviation share price will remain in focus for European stock market investors on the Euronext Paris amid rising geopolitical tensions between India and Pakistan. Shares of Dassault Aviation last settled 3.44 per cent lower at €314.60 apiece on the Paris Stock Exchange.

Dassault Aviation is the manufacturer of the Rafale fighter jets, which were used by the Indian Air Force to conduct precision strikes on terror sites in the Pakistani territory, i.e., Pakistan-occupied Kashmir (PoK) and Pakistan terror camps.

According to Avinash Gorakshkar, Head of Research at Profitmart Securities Ltd, Dassault Aviation manufactures the Rafale fighter jets, which the Indian Air Force reportedly used to conduct precision strikes on terror launchpads inside Pakistani territory. "So, the market expects some movement in the stock linked to the performance of Rafale fighter jets," added Gorakhshkar.

Dassault Aviation share price trend

Dassault Aviation's share price has delivered a strong performance in recent months. The shares of Rafale maker have declined five per cent over the past four trading sessions and are up 19 per cent in the last month. The stock has surged 63 per cent in six months, and is up 65 per cent year-to-date (YTD). Over the past five years, Dassault shares have appreciated by 350 per cent.

According to Anshul Jain, Head of Research at Lakshmishree Investments, Dassault Aviation has broken out of a bullish 31-day-long cup and handle pattern on the daily chart. The base shows strong institutional interest with several candles displaying volume over 5x the 50-day average.

"The ongoing three-day decline appears to be a healthy retest of the breakout level at €315. A decisive move above €325 will trigger fresh bullish momentum, with €395 as the immediate target. The structure remains strong as long as €315 holds," added Jain on Dassault Aviation stock.

India-Pakistan tensions

India had launched Operation Sindoor on May 7 in response to the deadly terror attack in Kashmir's Pahalgam on April 22. India launched strikes at terrorist infrastructure in Pakistan and PoK. Pakistan then unleashed drones and missiles at Indian military targets in over a dozen cities and towns, many of them being air force bases. The Indian Army said the attacks are repulsed.

However, on Saturday, India and Pakistan agreed to an immediate ceasefire mediated by the US, ending four days of escalating hostilities between the nuclear-armed neighbours. Soon after, Foreign Secretary Vikram Misri said that “there had been repeated violations of the understanding” on ceasing fire and accused Pakistan of breaching the agreed-upon agreement.

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