Indian stock markets continued their downward spiral on Friday as escalating tensions between India and Pakistan rattled investor sentiment. The BSE Sensex dropped 771 points, settling at 79,566.02, while the NSE Nifty fell 205.55 points to 24,068.25.
The sharp decline comes after India’s armed forces launched ‘Operation Sindoor’, targeting nine terror sites in Pakistan and Pakistan-occupied Kashmir (PoK) on Wednesday. In retaliation, Pakistan attempted missile and drone strikes on Indian military sites in Jammu, Pathankot, and other northern regions, all of which were successfully intercepted.
Market analysts suggest that while the conflict has demonstrated India’s military superiority, prolonged uncertainty could impact capital inflows and economic stability. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that despite the geopolitical risks, global and domestic macroeconomic factors remain supportive.
Among Sensex firms, Power Grid, ICICI Bank, NTPC, UltraTech Cement, Adani Ports, Bajaj Finserv, and Bajaj Finance were among the biggest losers. However, Larsen & Toubro surged 4% after reporting a 25% increase in quarterly profits, while Titan Company gained nearly 4% following strong earnings.
Asian markets showed mixed trends, with South Korea’s Kospi and Shanghai’s SSE Composite index trading lower, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng posted gains. Meanwhile, Brent crude oil prices climbed 0.53% to USD 63.17 per barrel, reflecting concerns over supply disruptions.
Market experts warn that profit-taking may continue as investors trim equity holdings amid uncertainty. Prashanth Tapse, Senior VP at Mehta Equities Ltd, stated that volatility is expected to persist, though India’s economic fundamentals remain strong.
With tensions still unfolding, investors are closely monitoring government statements and diplomatic developments for further cues on market direction.
