Indian stocks slump as tensions escalate with Pakistan; Sensex, Nifty down over 1%

New Delhi [India], May 9 (ANI): Indian stock indices - Sensex and Nifty - edged lower for the second straight day as the ongoing tensions between Indian and Pakistan have escalated to another level.
Sensex closed at 79,454.47 points, down 880.34 points or 1.10 per cent, and Nifty closed at 24,008.00 points, down 265.80 points or 1.10 per cent. Nifty realty was the worst hit among the sectoral indices - down 2.4 per cent. Amidst these volatility, Nifty and Nifty PSU bank are the only sectoral indices that have managed to remain in the green.
Cumulatively, Sensex and Nifty slumped about 2 per cent each during the week that ended today.
Last week, the Sensex and Nifty indices registered their longest weekly winning streak of 2025. Cumulatively, Sensex soared over 1,100 points or 1.5 per cent in the holiday-truncated week. The stock exchanges were closed on May 1 for Maharashtra Day.
Pakistani armed forces have been violating ceasefire and targeting civilian villages and Indian armed forces' posts along the International Border and the Line of Control in various sectors. The attacks were effectively repulsed and a befitting reply was given to the ceasefire violations by the Pakistani side.
"A conflict was anticipated but the market was not expecting the situation to intensify, raising concerns about its duration. However, it is still projected to be a short-lived confrontation, given the strategic advantage and the opponent's weak economic standing," said Vinod Nair, Head of Research, Geojit Investments Limited.
"Interestingly, Foreign Institutional Investors (FIIs) continued to invest in the Indian market until yesterday, while retail investors remain slightly cautious at the moment," Nair added.
Foreign portfolio investors turned net buyers in Indian markets after three months, though the pace of buying remains tepid.
"Benchmark indices extended their downward trajectory for the second consecutive session on May 9, as heightened geopolitical tensions overshadowed otherwise constructive global cues," said Bajaj Broking Research.
Indian stock indices had seen upward movement since Trump's decision to pause the reciprocal tariffs on dozens of countries, including India, for 90 days. The tariffs had initially set off a sell-off in equities globally, and India was no exception.
Geopolitical tensions between India and Pakistan following the terrorist attack in Pahalgam on April 22, had weighed on investor of late. The investors will continue to keep an eye on the escalation of tensions between the two nations, as they bet in the financial markets. (ANI)