Goa, May 8 -- Shares of Chinese jet manufacturer AVIC Chengdu Aircraft surged by 36% over two days amid rising tensions between India and Pakistan following Operation Sindoor. The stock rally was triggered by speculation that Pakistan had deployed Chinese-made J-10C and JF-17 fighter jets in response to Indian airstrikes on terror camps in Pakistan and Pakistan-occupied Kashmir.

On Wednesday, AVIC Chengdu's shares jumped 17%, followed by a 16.37% rise on Thursday, pushing the price to 80.68 yuan-an all-time high for the defence contractor.

The spike was further driven by a flood of reports and rumours-many of which were later debunked-suggesting that Pakistani jets had downed Indian aircraft during the strikes. Investors, anticipating a...