‘Operation Sindoor’ visual is displayed on a screen outside the Bombay Stock Exchange (BSE) building, in Mumbai
| Photo Credit: PTI

Stock market benchmark indices Sensex and Nifty tumbled over 1% each on Friday (May 9, 2025) as tensions soared between India and Pakistan, fuelling fears of a wider conflict.

Extending its previous day’s decline, the 30-share Bombay Stock Exchange (BSE) benchmark gauge tanked 880.34 points or 1.10% to settle at 79,454.47, in a largely range-bound trading.

The NSE Nifty dropped 265.80 points or 1.10% to 24,008.

India on Thursday (May 8, 2025) night swiftly thwarted Pakistan’s fresh attempts to strike military sites with drones and missiles, including in Jammu and Pathankot, after foiling similar bids at 15 places in northern and western regions of the country as tensions soared between the two countries.

The Indian Armed Forces (IAF) on Wednesday (May 7, 2025) had carried out precise missile strikes on nine terror targets in Pakistan-occupied Kashmir (PoK) and Pakistan under ‘Operation Sindoor’.

A conflict was anticipated, but the market was not expecting the situation to intensify, raising concerns about its duration. However, it is still projected to be a short-lived confrontation, given the strategic advantage and the opponent’s weak economic standing.

“Interestingly, Foreign Institutional Investors (FIIs) continued to invest in the Indian market until yesterday, while retail investors remain slightly cautious at the moment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

From the Sensex firms, ICICI Bank, Power Grid, UltraTech Cement, Bajaj Finance, HDFC Bank, Reliance Industries, Bajaj Finserv, Adani Ports, Mahindra & Mahindra and NTPC were among the laggards.

Titan Company climbed over 4% higher after the Tata group firm reported a 13% increase in its consolidated profit after tax at ₹871 crore in the March quarter, driven by robust sales.

Larsen & Toubro jumped nearly 4% after the firm reported a 25% increase in consolidated Profit After Tax (PAT) to ₹5,497 crore for the quarter ended March 31, 2025, supported by higher revenues and an exceptional gain.

Tata Motors, State Bank of India and Asian Paints were among the gainers.

Foreign Institutional Investors (FIIs) bought equities worth ₹2,007.96 crore on Thursday (May 8, 2025), according to exchange data.

In Asian markets, South Korea’s Korea Composite Stock Price Index (KOSPI) and Shanghai’s Shanghai Stock Exchange (SSE) Composite index settled lower, while Japan’s Nikkei 225 index and Hong Kong’s Hang Seng ended in the green.

European markets were trading higher.

US markets ended in positive territory on Thursday (May 8, 2025).

Global oil benchmark Brent crude climbed 1.53% to $63.80 a barrel.

On Thursday (May 8, 2025), the BSE Sensex declined by 411.97 points or 0.51% to settle at 80,334.81. The Nifty ended lower by 140.60 points or 0.58% at 24,273.80.