• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Markets fall, defence stocks jump as Indo-Pak tensions flare, but analysts call reaction mild

by May 9, 2025
written by May 9, 2025

Indian equity markets opened sharply lower on Friday, weighed down by investor concerns following a series of drone and missile attacks launched by Pakistan on the evening of May 8.

The benchmark BSE Sensex fell 765.80 points or 0.95% to 79,569.01, while the NSE Nifty50 Index dropped 245.20 points or 1.01% to 24,028.60 by 10:45 AM.

The sell-off came despite a continued flow of foreign institutional investments into the Indian equity market.

Analysts noted that the sudden rise in geopolitical tensions had injected short-term uncertainty into otherwise strong domestic and global fundamentals.

Defence ministry confirms drone, missile strikes along western border

According to the Ministry of Defence, Pakistan Armed Forces targeted military installations using drones and other munitions along the Western border and carried out multiple ceasefire violations (CFVs) along the Line of Control in Jammu and Kashmir.

Key military stations including Jammu, Pathankot, and Udhampur came under attack from Pakistani-origin drones and missiles.

However, all threats were neutralised without any casualties or material loss, with the Indian response deploying both kinetic and non-kinetic countermeasures in line with standard operating procedures.

However, it has marked a significant escalation in tensions between the two nations.

Broader markets reel, but defence stocks gain ground

Across the board, sectoral indices were under pressure.

Nifty Bank, FMCG, Media, Metal, and Realty indices declined by 1–2%.

Mid and small-cap indices were not spared either, with the Nifty Midcap100 falling 1% and the Smallcap100 shedding 2%.

However, defence-related stocks saw sharp gains, driven by expectations of increased defence spending and faster order execution.

Shares of Bharat Electronics surged 3.41%, Bharat Dynamics gained 3.31%, and Astra Microwave climbed 3.21%.

Other gainers included Hindustan Aeronautics (2.34%), Paras Defence (2.08%), and Mazagon Dock Shipbuilders (1.56%).

“The attack has drawn attention to the defence sector’s strategic importance. With large order books already in place, these companies could benefit from accelerated execution timelines,” said Dr. Vikas Gupta, CEO of OmniScience Capital.

“That said, investors should remain cautious and invest based on valuation and scientific frameworks.”

Why market reaction is still subdued?

Despite the short-term decline, analysts remain optimistic about the broader outlook for Indian markets.

They pointed out that foreign institutional investors (FIIs) are continuing to invest in Indian equities, reflecting their sustained confidence in the country’s long-term economic growth prospects, even amid rising geopolitical tensions.

FIIs have poured in over Rs 47,000 crore ($5.5 billion) into Indian equities over the past 16 sessions.

This marks one of the longest buying streaks since December 2020 and underscores investor confidence in India’s long-term growth trajectory.

“Under normal circumstances, on a day like this, the market would have suffered deep cuts. But this is unlikely due to two reasons. One, the conflict, so far, has demonstrated India’s clear superiority in conventional warfare, and therefore, further escalation of the conflict will inflict huge damage to Pakistan. Two, the market is inherently resilient, supported by global and domestic macros. Weak dollar and potentially weakening US and Chinese economies are good for the Indian market,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Vijayakumar added that the domestic macros are further bolstered by high GDP growth expected this year, and the declining interest rate environment which is why FIIs are on a buying spree.

“Investors should not panic and exit from the market now. Remain invested, monitor the developments and wait for the dust to settle,” Vijayakumar added.

Technical outlook by analysts

On the technical front, analysts flagged a shift in short-term trend after the Nifty closed below its 5-day exponential moving average (EMA) placed at 24,340.

“Immediate resistance is seen between 24,340–24,500, while support lies in the 23,978–23,800 band,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.

Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities, said over the past three weeks, the Nifty 50 has been consolidating within the 24,000 to 24,600 range, suggesting a short-term sideways trend.

However, the index remains well above its 20-, 50-, 100-, and 200-day simple moving averages, which points to sustained bullish sentiment over the longer term.

“On the upside, the Nifty is likely to build on this strength and may advance toward the 24,800 to 25,000 levels. The key support area lies between 24,000 and 23,800, making any dip toward this zone a potential buying opportunity for traders. The weekly Relative Strength Index (RSI) remains in positive territory, indicating continued upward momentum.”

The post Markets fall, defence stocks jump as Indo-Pak tensions flare, but analysts call reaction mild appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Europe markets open: Stoxx 600 points up; focus on Commerzbank earnings, US-China trade outlook
next post
Geopolitical tensions jeopardise energy flows in India and Pakistan

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • 4 Trump rivals that Biden didn’t pardon

    January 21, 2025
  • Teens spend more than a quarter of their time at school on phones, new study finds

    February 4, 2025
  • ’60 Minutes’ producer leaves show, citing a loss of journalistic independence

    April 23, 2025
  • Transgender women to be banned from Capitol Hill female bathrooms under new House GOP proposal

    November 19, 2024
  • EXCLUSIVE: Jubilant Mike Johnson claims victory as Florida helps House GOP grow majority

    April 2, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,735)
  • Investing (624)
  • Stock (775)

Latest Posts

  • FBI flooded with record number of new agent applications in Kash Patel’s first month leading bureau

    April 2, 2025
  • Tesla stock surges 6%: analyst sees more gains ahead

    May 12, 2025
  • FBI Deputy Director Dan Bongino: James Comey ‘brought shame to the FBI again’ with ’86 47′ post

    May 18, 2025

Recent Posts

  • Trump, Putin call expected this week, as admin edges closer to Russia-Ukraine ceasefire deal: Witkoff

    March 16, 2025
  • ‘Swindled the American taxpayer’: New House GOP internal memo rips Dem USAID uproar

    February 5, 2025
  • Trump budget bill in peril as warring House GOP factions threaten rebellion

    February 25, 2025

Editor’s Pick

  • Trump NIH appointee defends president’s research funding cuts, lays out new vision for future

    March 5, 2025
  • Trump administration picks’ families have 1 thing in common

    November 21, 2024
  • Trump must dump ‘One China’ policy and recognize ‘free’ Taiwan, House Republicans say

    February 6, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock