Indian Markets Tumble Amid Tensions with Pakistan
Stock Market Slides 800 Points Amid Escalating India-Pakistan Conflict
The Indian stock market opened lower this morning, bunkering down amid heightened geopolitical tensions with Pakistan. The escalation followed Pakistan's attempts at aerial strikes on Indian military bases and cities last night, but they were successfully thwarted.
The Sensex plummeted over 1,300 points during pre-market hours, but quickly bounced back, opening only 500 points lower. Nifty, which dipped below the critical 24,000 mark, regained its footing as the market opened at 9:15 am.
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Prominent stocks like Titan, Larsen and Toubro, BEL, and Tata Motors saw gains, while Power Grid, ICICI Bank, Ultratech Cement, and Eicher Motors struggled.
As of 10:15 am, Sensex stood at 79,462 points, nearly 800 points lower since the previous closing, and Nifty at 23,987 points, marking a 200-point loss for the day.
Experts believe that such geopolitical situations typically inflict a heavier toll on the markets. However, two distinct factors have shielded India: its advantage in conventional warfare and a robust, resilient market bolstered by a weak dollar.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, posits that the markets could have faced severe losses under such circumstances. Yet, because the conflict demonstrates India's military edge and the market's inherent resilience, supported by global and domestic economic factors, it is unlikely to plunge.
"A weak dollar and potential economic weakness in the US and China benefit the Indian markets," adds Mr. Vijayakumar.
Yesterday, exchange data showed foreign inflows worth over Rs 2,000 crore.
Pakistan, a long-time exporter of terror globally, opposed India's "Operation Sindoor," which commenced two days prior, targeting terror training camps in Pakistan and Pakistan-Occupied Kashmir. In response, Pakistan launched aerial attacks on military bases in Jammu, Pathankot, and Udhampur in India. However, their attempts were neutralized without reporting any losses or casualties.
Pakistani troops persisted in firing across the Line of Control, targeting both military posts and civilians. Accused of sheltering terrorists, Pakistan has been under pressure since the Op Sindoor footage exposed the terrorist infrastructure thriving within the country. Their calls for a neutral probe also appear disingenuous, given their past failures to act despite ample evidence and access to terror attack sites.
- The Indian stock market, amid tensions with Pakistan, opened lower this morning, with the Sensex dropping over 1,300 points during pre-market hours.
- The escalation between the two nations followed Pakistan's attempts at aerial strikes on Indian military bases and cities, but these were successfully thwarted.
- As of 10:15 am, the Sensex stood at 79,462 points, nearly 800 points lower since the previous closing, and Nifty at 23,987 points, marking a 200-point loss for the day.
- Experts believe that geopolitical situations typically have a heavier impact on markets, but India's advantage in conventional warfare and a robust market supported by a weak dollar have shielded it.
- VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, posits that under such circumstances, markets could face severe losses, but the conflict demonstrates India's military edge and market resilience.
- Yesterday, exchange data showed foreign inflows worth over Rs 2,000 crore.
- Pakistan, a long-time exporter of terror globally, opposed India's "Operation Sindoor," targeting terror training camps, and in response, Pakistan launched aerial attacks on military bases in India, but their attempts were neutralized.
