How stock markets reacted in India and Pakistan

Indian markets

On April 23, following the attack in Pahalgam that resulted in at least 26 fatalities, Indian financial markets experienced a downturn. The Sensex opened at 80116, and on May 8 — the latest closure– the key index was at 80334.81.

In between, the major fall was on April 30, when the Sensex fell by 588.90 points (0.74%), closing at 79,212.53, while the Nifty 50 declined by 207.35 points (0.86%) to 24,039.35. The volatility index (VIX) surged, indicating heightened investor apprehension. and on May 8, when the reports of military tensions, including drone and missile attacks by India near Kashmir, led to a significant market reaction. The Sensex dropped by 411.97 points (0.51%), closing at 80,334.81, and the Nifty 50 declined by 140.60 points (0.58%) to 24,273.80. The Indian rupee depreciated by 1%, marking its worst single-day decline in over two years.

However, shares of defense companies like Bharat Electronics and Hindustan Aeronautics saw gains, reflecting increased demand for defense-related products, though most sectors, including mid-cap and small-cap indices, experienced declines due to profit-taking and heightened geopolitical risks.