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Mumbai, May 9, 2025 – The Indian stock market kicked off the day with a sharp downturn, rattled by escalating tensions between India and Pakistan. The Nifty 50 crashed 350 points at the opening bell, slipping below the critical 24,000 mark, while the Sensex nosedived over 1,000 points. Heavyweight stocks like Zomato and Jio Financial Services bore the brunt, each tumbling 3% as investors grappled with geopolitical uncertainty and a packed earnings calendar.
Late Thursday evening, India’s air defense units intercepted eight Pakistani missiles targeting key border areas, intensifying fears of further retaliation. The market’s jitters were evident in yesterday’s session, where the Nifty erased nearly 200 points from its daily high, closing at 24,273 after a 120-point adjustment. The broader market faced even steeper losses, with the Midcap index plummeting over 1,000 points.
As corporate earnings continue to roll in, stocks like Titan, Britannia, Pidilite, and Kalyan Jewellers are under the spotlight for their Q4 results, while Dr. Reddy’s Laboratories, Swiggy, Bank of India, and KPR Mill are set to announce their numbers today.
Market Pulse: Geopolitical Tensions Take Center Stage
The India-Pakistan border conflict, trending heavily on Google, has injected volatility into the markets. India’s confirmation of retaliatory strikes against Pakistan’s attempts to target military installations added fuel to the fire. Posts on X highlight growing investor caution, with some pointing to the relative resilience of Indian markets compared to Pakistan’s KSE-100, which has tanked 10% in two days.
The Indian Rupee also felt the heat, opening weaker at 85.81 against the US Dollar, down from its previous close of 85.71. Experts warn that prolonged uncertainty could trigger foreign institutional investor (FII) outflows, with Ed Yardeni of Yardeni Research noting, “Foreign investors will likely lighten their positions until the situation stabilizes. Uncertainty drives capital to safer havens.”
Expert Takes: Volatility or Opportunity?
Market veterans offered mixed perspectives on the unfolding crisis. Arvind Sanger of Geosphere Capital Management expressed concern over the lack of external mediation, stating, “With the US adopting an ‘America First’ stance, there’s little pressure to de-escalate. Markets could face sustained pressure if tensions persist.”
Conversely, Prashant Khemka of WhiteOak Capital Management remained optimistic, citing historical trends: “Geopolitical conflicts, like the Kargil War, typically de-escalate within days or months. Markets often recover swiftly, and we could see a rebound soon if tensions ease.” He noted that the Nifty’s 1% drop yesterday and GIFT Nifty’s signal of another 1% decline today may already be pricing in the worst.
Stocks in Focus
- Tata Motors: The stock is grabbing attention after the US-UK trade deal slashed tariffs on car imports from 27.5% to 10% for up to 1 lakh vehicles. With Jaguar Land Rover shipping 1.02 lakh vehicles to the US in 2024, Tata Motors stands to benefit, though additional imports will still face a 25% tariff.
- Earnings Reactions: Titan, Britannia, Pidilite, and Zee Entertainment are expected to see price movements post their Q4 results. Kalyan Jewellers, which reported a robust 36% jump in net profit to Rs 187.6 crore, could see positive traction.
- Q4 Results Today: Dr. Reddy’s Laboratories, Swiggy, Bank of India, and KPR Mill are among the key names reporting, with investors
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