Shares of Hindustan Aeronautics Limited (HAL), the manufacturer of India’s Tejas fighter jet, fell sharply after the aircraft crashed during a demonstration at the Dubai Air Show.

The UAE Ministry of Defense confirmed the pilot’s death and said emergency teams responded immediately.

Following news of the accident, Hindustan Aeronautics Limited (HAL) -- the manufacturer of the Tejas fighter jet -- saw its share value decline in the Indian stock market.

Key market impacts:

HAL share price fell 2.58%
The stock dropped by 121.60 Indian rupees during the trading session
HAL shares closed at 4,595 Indian rupees on the BSE Sensex

The market reaction reflected investor concerns after the high-profile crash involving an aircraft built by the state-owned aerospace giant.

Crowd disappointment as spectators leave air show

Arab media reported widespread disappointment among attendees at the Dubai Air Show, with many spectators and participants leaving the event early following the crash.

Also Read: What is India's Tejas fighter jet that crashed during Dubai Air Show?

Families, aviation enthusiasts, and international delegations had gathered to watch the aerial display when the jet erupted into flames.

UAE Ministry of Defense issues statement

The UAE Ministry of Defense confirmed the following:

The Tejas fighter jet crashed during the Dubai Air Show.
The pilot died in the accident.
Emergency teams reached the crash site immediately to secure the area.

UAE authorities expressed condolences and said further coordination would continue with Indian officials.

Also Read: India's Tejas fighter jet crashes at Dubai Air Show

Pilot praised for expertise; technical fault indicated

According to early briefing details:

The aircraft was flown by an expert Indian pilot.
Initial assessments indicate the crash occurred due to a technical fault, not pilot error.
The pilot had undergone six months of special Tejas training.
During the training programme, he had ranked at the top, highlighting his skill and capability.

The acknowledgment underscores that the accident may be linked to mechanical or system malfunction.

Indian Air Force begins investigation

The Indian Air Force (IAF) has launched a formal investigation to determine the precise cause of the crash.
Officials say a detailed inquiry will examine all technical, operational, and environmental factors surrounding the incident.

The loss of the aircraft and its pilot has prompted renewed scrutiny of the Tejas programme, even as the IAF continues to integrate the jet into its fleet.