Market Reaction to Geopolitical Tensions

Indian equity benchmark indices, Nifty50 and BSE Sensex, opened in red on Friday following the escalation of tensions between India and Pakistan. Nifty50 fell below 24,150, while BSE Sensex dipped to below 80,000 levels. At 9:16 AM, Nifty50 was trading at 24,113.30, down 161 points or 0.66%. BSE Sensex was at 79,863.96, down 471 points or 0.59%.

Market uncertainty is likely to continue as participants monitor ongoing developments between India and Pakistan. (AI image)

Expert Insights

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, suggests that the market's resilience is supported by India's clear superiority in conventional warfare and strong domestic macros. He advises investors to remain invested and monitor developments.

Global Market Impact

US stocks advanced following positive developments in US-UK trade relations, while Asian equities edged higher on hints of possible reduction in Chinese tariffs. Gold prices strengthened as investors sought safe-haven assets amidst geopolitical tensions.

Currency and Investment Flows

The Indian rupee experienced its most significant one-day decline in over 30 months, dropping by 81 paise to close at 85.58 against the US dollar. Foreign portfolio investors purchased shares worth Rs 2,008 crore net, whilst domestic institutional investors sold Rs 596 crore net.