Posted on May 9, 2025, by Niftynews
Operation Sindoor impact on stock market became clearly visible today as Indian benchmark indices tumbled sharply. Escalating military tension between India and Pakistan weighed heavily on investor sentiment, pulling Sensex down by over 800 points and pushing Nifty50 below the 24,100 mark.
By 10:14 AM on Friday, Nifty50 was down 239 points (0.98%) at 24,035.25, while BSE Sensex had fallen 746 points (0.93%) to 79,588.71. This significant decline is being directly attributed to developments in Operation Sindoor, India’s counter-response to multiple cross-border threats.
🔍 What’s Driving the Operation Sindoor Impact on Stock Market?
The Operation Sindoor impact on stock market sentiment was triggered by a chain of high-tension developments:
- India struck targets across Lahore, Karachi, and Rawalpindi after neutralizing Pakistani drone threats.
- High alerts have been issued across Punjab, J&K, and Rajasthan.
- Chandigarh sounded air raid sirens, and civilians were advised to stay indoors.
Despite these alarming updates, many analysts believe the Indian market’s fall is still moderate compared to similar geopolitical shocks in the past.
🧠 Expert Take on the Operation Sindoor Impact on Stock Market
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explains:
“Given the intensity of the situation, today’s market fall could have been worse. But India’s dominance in conventional warfare and solid economic fundamentals are preventing a larger selloff.”
His comments reflect growing confidence in India’s macroeconomic resilience even during external disturbances.
📊 Sensex and Nifty Movement: Volatility or Trend?
Despite the Operation Sindoor impact on stock market, analysts point out that since the April 22 Pahalgam attack, both Sensex and Nifty have actually posted gains—showing market confidence in India’s ability to manage geopolitical risks. Meanwhile, the Pakistan stock market has plummeted, reflecting instability in that region.
💸 Wealth Wiped Out – ₹5 Lakh Crore Gone in 24 Hours
The latest wave of volatility has erased nearly ₹5 lakh crore from investor portfolios, reminding everyone of how fast markets react to geopolitical news. However, foreign institutional investors (FIIs) showed optimism, buying ₹2,008 crore worth of Indian equities on Thursday, while domestic institutions sold ₹596 crore worth.
📉 Operation Sindoor Impact on Currency and Gold
The Indian Rupee suffered its sharpest one-day drop in over two years—falling by 81 paise to 85.58 against the USD.
Anuj Choudhary from Mirae Asset Sharekhan noted:
“We expect the rupee to trade negatively due to both the strong dollar and the ongoing geopolitical scenario. However, FII support could offer stability at lower levels.”
Meanwhile, gold prices spiked again, as investors sought refuge in the traditional safe haven.
🌐 Global Markets Show Stability
While Operation Sindoor has shaken Indian markets, US and Asian equities displayed mild optimism. U.S. indices rose on the back of a new UK trade agreement and encouraging signals regarding China tariffs.
This shows that global markets are not pricing in a broader regional crisis yet—but that could change with further escalation.
📌 What Should Investors Do Amid Operation Sindoor Impact on Stock Market?
Here’s what investors need to consider:
- Avoid panic selling. Geopolitical shocks are often short-lived in market impact.
- Stay diversified. Allocate some exposure to gold and defensive sectors.
- Watch FII activity. Their continued buying reflects confidence in Indian growth.
- Track updates. Sudden developments could cause intraday volatility.
🧾 Summary – Key Highlights
- Sensex down 800+ points, Nifty50 under 24,100.
- Indian Rupee hits 30-month low at 85.58/USD.
- ₹5 lakh crore investor wealth wiped out in a single session.
- FIIs remain net buyers despite geopolitical risk.
- Safe-haven demand boosts gold prices.
- Indian market seen as resilient, unless conflict deepens further.
📈 Final Word on Operation Sindoor Impact on Stock Market
While the Operation Sindoor impact on stock market is significant, India’s long-term economic strength and market fundamentals remain intact. Unless the situation escalates dramatically, markets could stabilize once clarity emerges. For now, investors should stay calm, informed, and strategically positioned.
