Rising India-Pakistan Tensions Impact Indian Stock Market; Sensex Falls Below 79,000
India-PAK Conflict: Escalating tensions between India and Pakistan significantly impacted the Indian stock market. A sharp decline was observed in both the Sensex and Nifty indices as soon as the market opened on Friday. The Bombay Stock Exchange (BSE) Sensex plummeted to 78,968, while the National Stock Exchange (NSE) Nifty also experienced a drop of approximately 200 points. Shares of major companies like Tata and Reliance also traded in the red.
Market Decline Despite Positive Global Signals
Despite positive global market indicators, such as gains in Japan's Nikkei and GIFT Nifty, the India-Pakistan tension negatively impacted the Indian market. The Sensex fell from its previous close of 80,334.81 to 78,968. However, a partial recovery was seen later, with the Sensex recovering to 79,633.
Defense Stocks Outperform Amidst Decline
Amidst the overall market decline, some companies saw their share prices rise. Prominent gainers included Titan Company, L&T, Bharat Electronics, and Dr. Reddy's Labs. Conversely, Power Grid, Adani Ports, Adani Enterprises, and Asian Paints experienced declines.
Sharply Falling Stocks
Several major companies experienced significant share price drops during this downturn. Power Grid shares fell by 3%, while ICICI Bank, HUL, Reliance, and HDFC Bank also saw their shares decline. Midcap and smallcap companies also witnessed losses, including shares of Indian Hotels, RVNL, NHPC, and UCO Bank. Muthoot Finance shares experienced a decline of over 10%.
Significant Drop Observed the Previous Day
The market also experienced volatility on Thursday. Following reports of drone attacks in Pakistan, both the Sensex and Nifty indices suffered substantial losses. The Sensex closed at 80,334.81, down 411.97 points, while the Nifty fell 140.60 points to close at 24,273.80. This sudden drop resulted in an estimated loss of ₹5 lakh crore for investors.
