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Indian equity markets opened lower amid rising tensions with Pakistan.
Tensions increased after Pakistan’s military attempted aerial strikes on India.
Experts cite India military advantage, resilient markets as stabilising factors.
Indian equity markets opened lower this morning amid heightened tensions with Pakistan over an anti-terrorism operation by New Delhi in the aftermath of the Pahalgam terror attack. This follows a major military escalation by Pakistan last night that saw attempts at aerial strikes on Indian military bases and cities, but the missiles and drones were neutralised.
Sensex dropped over 1,300 points during the pre-market hours but quickly wiped out the losses and opened just 500 points lower. Nifty, which had dropped below 24,000, regained the critical level as the market opened at 9:15 am.
India-Pakistan tensions: Live Updates
In the 30-share Sensex pack, Titan, Larsen and Toubro, BEL, and Tata Motors were among the major gainers, whereas Power Grid, ICICI Bank, Ultratech Cement, and Eicher Motors were among the laggards.
At 10:15 am, Sensex stood at 79,462 points, over 800 points down since last closing, and Nifty at 23,987 points, over 200 points in loss for the day.
Experts say that such a situation usually deals a bigger blow to the markets, but two factors have worked well for India – its clear superiority in conventional warfare and a resilient market due to a weak dollar.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the markets would have suffered deep cuts on such a day. But it’s unlikely since the conflict has demonstrated India’s superiority in warfare, and the market is inherently resilient, supported by global and domestic macros.
“Weak dollar and potentially weakening US and Chinese economies are good for the Indian markets,” said Mr Vijayakumar.
Exchange data shows foreign inflows worth over Rs 2,000 crore yesterday.
Pakistan, known for exporting terror globally, opposed India’s “Operation Sindoor“, which began two days ago and targeted terror training hubs in Pakistan and Pakistan-Occupied Kashmir, and launched aerial strikes on places in India.
These air strikes targeted military bases in Jammu, Pathankot, and Udhampur, but the Indian forces took the missiles and drones down. No loss or casualty was reported.
Pakistani troops also continued rampant firing at multiple points across the Line of Control, targeting Indian posts and civilian areas alike.
Pakistan, repeatedly accused of harbouring terrorists, has been on the back foot since the footage of Op Sindoor exposed the terror infrastructure flourishing in that country. Their call for a neutral probe also exposed their duplicity, given past incidents of Islamabad failing to act despite being given ample evidence and being allowed to visit terror attack sites.
