Mumbai– Indian stock markets tumbled sharply on Friday as escalating tensions between India and Pakistan rattled investor confidence, leading to broad-based selling across sectors.
The selloff was triggered after Pakistan launched eight missiles at Indian cities in retaliation for India’s recent precision strikes on terror camps in Pakistan and Pakistan-occupied Kashmir (PoK). All missiles were successfully intercepted by Indian air defense systems, but the heightened geopolitical risk sent markets into a tailspin.
The benchmark Sensex closed 880.34 points lower, or 1.10%, at 79,454.47, while the Nifty 50 dropped 265.80 points, also down 1.10%, to settle at 24,008.
“Nifty traders embraced a risk-off sentiment amid India-Pakistan tensions, dragging the index out of its recent consolidation range,” said Rupak De, Senior Technical Analyst at LKP Securities. He noted that the Nifty held above the 24,000 mark, finding technical support around its 21-day exponential moving average (EMA).
Banking and financial stocks led the decline, with ICICI Bank falling 3.09%, followed by PowerGrid (-2.61%), Bajaj Finance (-1.84%), and Reliance Industries (-1.84%).
Still, a handful of stocks bucked the trend. Titan gained 4.25%, followed by Larsen & Toubro (4.02%), Tata Motors (3.86%), State Bank of India (1.39%), and Asian Paints (0.2%).
Sectoral indices reflected the broad market weakness. Nifty Bank, Financial Services, and Realty indices all fell more than 1%, with the Realty index emerging as the day’s worst performer, dropping nearly 2%. Other key sectors, including IT, Auto, Energy, FMCG, Healthcare, and Oil & Gas, also ended in the red.
However, not all sectors suffered losses. Nifty PSU Bank, Consumer Durables, Media, and Metal indices managed to post modest gains, providing limited support to the broader market.
In the mid- and small-cap space, the Nifty Midcap 100 index closed flat, while the Nifty Smallcap 100 shed 0.61%.
Meanwhile, the Indian rupee traded in a volatile range between 85.90 and 85.35 against the U.S. dollar, as geopolitical uncertainty kept currency markets on edge.
“Any fresh developments on the geopolitical front could have a significant impact on the rupee’s trajectory,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
With tensions showing no signs of easing, market participants remain on high alert, closely monitoring both diplomatic signals and military developments. (Source: IANS)
