Sensex and Nifty50, started the day's trade in red on Wednesday, May 7, 2025. The Sensex (30 firms index) tumbled 692.27 points to open at 79,948.80 on Wednesday. Meanwhile, Nifty50 (index with top 50 firms) also tumbled to open at 24,233.30 points.
The massive fall came after India conducted precision air strikes under Operation Sindoor on 9 terror camps in Pakistan and Pakistan occupied Jammu and Kashmir (PoK). The development has raised geopolitical tensions in the region, leading to a cautious mood among investors.
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The reaction in other Asian markets was mixed. The Hang Seng index in Hong Kong gained 1.66%, while Taiwan's weighted index was flat but in the green. South Korea's KOSPI index rose by 0.49%. However, Japan's Nikkei 225 index was slightly down by 0.09%.
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The markets witnessed profit-booking on Tuesday amid the continued rising geopolitical tensions between India and Pakistan and ended on a negative note. Overall, the rising geopolitical tension has created uncertainty among investors, and all eyes will be on how the situation between India and Pakistan develops in the coming days.
Ajay Bagga, a Banking and Market Expert, told ANI, "The geopolitical risk that was hanging over the Indian markets has got crystallised today with the Indian strikes on PoK and Pakistan-based terror camps. Indian markets will open with a negative gap, as we saw when the Uri strike and Balakot strike news was announced."
He added that the future impact on markets will depend on how the situation evolves in the coming days. "The future impact on the market will depend on whether this strike remains contained to today or if it expands. Geopolitical risk remains elevated, and we could see some more selling in the Indian markets," Bagga said.
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