India-pakistan Tensions: Dalal Street Takes A Rs 5-lakh Crore Market Cap Hit, Analysts On Market Outlook And More

Investors mislaid complete Rs 5 lakh crore connected Thursday amid rising possibilities of a full-blown conflict betwixt India and Pakistan, which led to panic trading connected Dalal Street. Market headdress of BSE-listed firms settled astatine Rs 418.10 lakh crore successful nan existent convention against Rs 423.50 lakh crore successful nan erstwhile session. 

Sensex closed 412 points little astatine 80,334 and Nifty slipped 140 pts to 24,273.

Earlier, Sensex and Nifty opened connected a affirmative note. Sensex opened 166 points higher astatine 80,912 and Nifty roseate 17 points to 24,431. 

However, nan marketplace was not capable to prolong nan gains and later shifted into a range-bound action successful nan mid portion of nan session. Sharp intraday weakness was witnessed successful nan 2nd portion of nan convention and Nifty closed adjacent nan lows.

Ajit Mishra – SVP, Research, Religare Broking said, "The ongoing uncertainty continues to make traders cautious, perchance clouding nan prevailing inclination amid lingering geopolitical tensions. Until nan volatility, arsenic indicated by nan elevated India VIX, subsides, we urge maintaining a hedged strategy to navigate nan existent environment, pinch attraction connected banal selection."

India VIX, nan Indian market's volatility index, roseate 10.18%, indicating heightened volatility during today's session. 

Rupak De, Senior Technical Analyst astatine LKP Securities said, "The near-term sentiment now appears weak, pinch nan imaginable for further correction successful nan short term. Immediate support is seen astatine 23,950; a break beneath this level could lead nan scale down towards 23,450. On nan upside, guidance is placed astatine 24,400 and 24,550."

Manoranjan Sharma, Chief Economist, Infomerics Valuation and Ratings advised investors not to edifice to panic trading successful nan existent marketplace situation. 

"My proposal will beryllium not to panic and sell, but to stay invested. India has weathered galore crises successful nan past, and this excessively will not beryllium immoderate different. This thesis tin beryllium substantiated by nan truth that astir incidents (except nan Parliament onslaught successful 2001) led to affirmative marketplace returns complete nan mean to agelong term, e.g., nan Nifty 50 roseate astir 30% aft 12 months post-Kargil War successful 1999, nan marketplace roseate 15.6 % aft 12 months post-the Uri onslaught and surgical strikes successful 2016, and nan Nifty 50 roseate 12.7 % station nan Pulwama attack. While location whitethorn beryllium a logic for concern, location is nary logic for immoderate siren aliases a consciousness of trepidation because of nan observed process of humanities development," said Sharma. 

Devarsh Vakil, Head of Prime Research, HDFC Securities said, "Nifty's short-term inclination turned anemic arsenic it closed beneath its 5-day EMA, which was placed astatine 24340 levels. On nan higher side, nan 24340-24500 set is apt to enactment arsenic contiguous resistance, while nan 24,000-24100 set could supply contiguous support connected nan downside arsenic markets digest nan unfolding geopolitical situation."

Published on: May 8, 2025 4:33 PM IST