Sensex and Nifty50, started the day’s trade in red on Friday, May 9, 2025. The Sensex (30 firms index) tumbled 1,366.47 points to open at 78,968.34 on Friday. Meanwhile, Nifty50 (index with top 50 firms) also tumbled to open at 23,935.75 points.
The massive fall came after the tensions between India and Pakistan continue to escalate. Following the Pahalgam terror attack, which claimed the lives of 26 people, India retaliated with a precision strike under Operation Sindoor, destroying 9 terror camps within Pakistan and Pakistan occupied Kashmir (PoK). Since then, Pakistan is involved in mischiefs against India, with India giving befitting reply to Pakistan. The continuous rise in the tensions, between the two countries, pulling the equities down.
Market experts attributed the decline to concerns around the escalating tension between the two nations, which dampened investor sentiment despite strong underlying fundamentals.
Despite the temporary setback, analysts maintain that the broader outlook for the Indian markets remains positive. They pointed out that foreign institutional investors (FIIs) continue to infuse capital into Indian equities, showing confidence in the economy’s long-term growth potential even amid geopolitical uncertainty.
Sectorally, the pressure was broad-based, with nearly all indices trading in the red at the time of filing the report. Nifty Metal led the fall, declining by more than 1%. Nifty Realty and Nifty Auto were also in the negative zone, reflecting the widespread cautious sentiment among investors.
On the global front, performance in other major Asian markets was mixed. Japan’s Nikkei 225 index surged by 1.47%, while Taiwan’s Weighted index gained 1.19%. Singapore’s Straits Times advanced 0.51%. However, markets in Hong Kong and South Korea were trading in negative territory at the time of reporting.
What Else For Sensex And Nifty?
VK Vijayakumar, Chief Investment Strategist, Geojit Investments said, “The domestic macros construct is further rendered stronger by the high GDP growth expected this year and the declining interest rate environment. These are the reasons why FIIs have been on a buying spree in the Indian market during the last sixteen trading sessions. Investors should not panic and exit from the market now. Remain invested, monitor the developments, and wait for the dust to settle.”
Akshay Chinchalkar, Head of Research, Axis Securities said, “The selling inflicted some short-term damage by sending the nifty below 24200 on an intraday basis, but the big level bulls need to protect is 24,000 and then the critical 23872. On the upside, the near-term bias will turn bullish only on a break of the 24450–24589 zone. The gift nifty opened nearly 350 points down but half an hour into trade had recovered somewhat, so we should brace for volatility.”
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