India-Pakistan tensions? Top Turkish defence stocks fall up to 10% in one month

Turkey stock market: Shares of two leading Turkish defence companies — Sdt Uzay ve Savunma Teknolojileri AS and Altinay Savunma Teknolojileri AS — have lost over 10% in a month since an escalation in the India-Pakistan tensions.

Shares of Sdt Uzay ve Savunma Teknolojileri AS dropped 10% from 201.40 lira to 182.30 lira currently. Similarly, shares of Altinay Savunma Teknolojileri AS are down 9.95% in one month.

Following a terrorist attack in India's Kashmir on April 22, which left 26 civilians dead, Indian military forces launched Operation Sindoor targeting terrorist camps in Pakistan and Pakistan-occupied Kashmir on May 7.

Turkey's support of Pakistan

During the four-day conflict that ended on May 10, Pakistan reportedly used drones supplied by Turkey. “A forensic examination of the drone debris is currently underway. Preliminary reports indicate that the drones are Turkish-made Asisguard Songar models,” Col Sofiya Qureshi and Wg Cdr Vyomika Singh had said in a press briefing.

Meanwhile, media reports indicate that a Turkish Ada-class anti-submarine corvette docked at Karachi port on May 2, while a Turkish C-130 Hercules military transport aircraft—possibly delivering an arms shipment—landed at Karachi airport on April 27.

Turkey also publicly endorsed its support for Pakistan after India's military operation against terrorist installations in Pakistan and Pakistan-occupied Kashmir.

Turkish President Tayyip Erdogan also spoke with Pakistan's Prime Minister Shehbaz Sharif to convey his solidarity after India hit Pakistan and Pakistani Kashmir with missiles, the Turkish presidency confirmed.

India's response to terrorism

Apart from military action, India's Prime Minister Narendra Modi also sent a strong message against tolerance for terrorism. Modi warned Pakistan that India will not succumb to nuclear blackmail and sent a clear message to the world: terror and trade, terror and talks cannot go together.

Against this backdrop, the Bureau of Civil Aviation Security (BCAS) on May 15 revoked the security clearance for the Turkish ground handling and cargo services provider Celebi. Following the decision, most of the nine airports that Celebi works with have cut ties with the company.

Moreover, Indians have also boycotted travel plans to Turkey. MakeMyTrip said flight bookings to Turkey have dropped by 60% in the last one week and cancellations surged by 250%.

India has intensified diplomatic pressure on Pakistan. The Indian government has decided to send all-party delegations to 33 global capitals to brief global leaders on India's resolve to deal with terrorism firmly against the backdrop of Operation Sindoor.

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