Kolkata: A day after full-scale conflict erupted between India and Pakistan on Thursday with India delivering numerous blows in all key cities of Pakistan, the stock market in India is expected to open in a climate of gunpowder in the air. After investors in Indian markets unusually held their nerves on May 7 and 8, the moot question is whether Sensex 30 and Nifty 50 will herald another day of resolute action by investors.
When trading closed on Thursday, Sensex 30 declined by 411.97 points or 0.51% and stood at 80,334.81 points, while Nifty 50 stood at 24,273.80 after declining 140.60 points or 0.58%. But what is remarkable is that both on Wednesday and Thursday both the broad indices opened in the green, though they expected volatility during the later hours.
Indian equity market vs Pakistan’s: picture in contrast
On the contrary, on May 8 after India knocked out a large part of Pak air defence system and a series of explosions were reported in major Pakistan cities, trading was suspended in Karachi stock market with the indices crashing by more than 7%.
On the eastern side of the border, the picture was completely different. When trading began on May 8, the markets hrdly displayed any sign of the circumspection and tentativeness expected after the intensification of geopolitical tension along the Indo-Pak border following India’s strike on terror camps in Pok and Pakistan. At 9:15 am, BSE Sensex stood at 80,861.51 points, up 114.73 points or 0.14%, while Nifty was trading at 24,427.45 points, up 13.05 points or 0.053%.
Possible market triggers on Friday
On May 8, market analysts said that investors in the Indian market did not panic perhaps because of the fact that it was apparent that the conflict on May 8 would not spill over to a protracted full-scale war.
The triggers on May 9 could be the fall in the value of the Indian rupee against the US dollar. It was recorded at 81 paise and the rupee settled at 85.58 against the greenback. It was the steepest single-day fall in more than two-and-a-half years for the Indian currency.
However, the global markets remained calm. As far as the geopolitical tension is concerned, the fact that India seems to have a clear upper hand could calm investor nerves.
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All eyes will be on the Indian stock market when trading opens on May 9 with India and Pakistan engaging in a full-scale conflict and India clearly having a upper hand. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
