Sharp Decline in Stock Market on Thursday Amidst India-Pakistan Tension. Sensex Crashes 950 Points, Nifty Below 24,100. Realty, Metal, and Auto Sectors Hit Hardest.
Stock Market May 9, 2025: Indian stock markets witnessed significant selling pressure on Thursday. The primary driver was the escalating geopolitical tension between India and Pakistan, which emerged after market hours. This has raised concerns about further declines on Friday, with experts predicting potential further drops in the Sensex and Nifty 50. However, analysts believe that these major indices are unlikely to hit lower circuits.
Sensex and Nifty Decline
Selling dominated Thursday's trading. The benchmark Nifty 50 index fell 0.58% to close at 24,273.80, while the Bank Nifty declined by 0.45%, closing at 54,365.65. This indicates increasing market volatility and investor unease.
Sectoral Pressure
Pressure was observed across all major sectors during the day's trading. The real estate, metal, and auto sectors experienced the steepest declines. In contrast, the IT sector was the only one to show gains, attracting investor interest. This could be a positive sign indicating some stability within certain market segments.
Midcap and Smallcap Decline
Broader indices, encompassing midcap and smallcap stocks, also witnessed declines. These stocks fell by 1.5% to 2%, indicating that shares of smaller and medium-sized companies are also under pressure.
What Should Investors Do?
Amidst these market events, experts advise investors to exercise caution. Investors with holdings in midcap and smallcap stocks, in particular, are urged to closely monitor their investments. However, companies with b fundamentals and stable businesses may still represent good investment opportunities during this period.
