Sharp Decline in Indian Stock Market on May 9th Amidst Rising Tensions Between India and Pakistan. The Sensex plunged 880 points, closing at 79,454.47, while the Nifty settled at 24,008.
Closing Bell: The escalating military tension between India and Pakistan significantly impacted the Indian stock market on Friday, May 9th. Both major benchmark indices, the Sensex and Nifty, experienced substantial declines. The Sensex closed down 880 points at 79,454.47, while the Nifty fell 265.80 points to close at 24,008.
Reasons for the Market Decline?
Market experts attribute the downturn to the rising tensions with Pakistan. However, they also indicated that a drop to the lower circuit limit for the Sensex and Nifty was unlikely.
Significant Sensex Drop, Nifty Also Under Pressure
The BSE Sensex opened over 1300 points lower at 78,968.34 on Friday, marking the day's lowest point. It later closed down 880.34 points (1.10%), settling at 79,454.47.
Meanwhile, the Nifty 50 opened at 23,935.75 and closed down 265.80 points at 24,008.
Top Losers and Gainers
Among Sensex companies, shares of ICICI Bank, Power Grid, and UltraTech Cement witnessed the steepest declines. However, despite the weak market, Titan's share price rose by 4%, and Tata Motors, L&T, SBI, and Asian Paints also saw gains.
Further Decline Possible?
According to market analyst Ambrish Baliga, if tensions with Pakistan escalate further, the Nifty could see a drop of 500 points, and the Sensex could fall by 2500 to 3000 points. However, an official government statement could potentially alter the situation and boost investor confidence.
Expert Opinion
U.R. Bhat, co-founder of Alphaniti Fintech, stated that the uncertainty stemming from the India-Pakistan tension could lead to a further decline of up to 5% in the Nifty.
