Indian markets plunge as tensions with Pakistan escalate

On April 25, 2025, Indian equity markets experienced a substantial decline, reflecting rising geopolitical tensions between India and Pakistan. This situation has been exacerbated by a recent terror attack in Pahalgam, Jammu and Kashmir, along with reports of ceasefire violations at the border. The Sensex, which opened positively, quickly reversed into heavy losses, dropping significantly throughout the day. It fell from an early high of 80,131 to a low of 78,606, eventually closing at 79,213, down 589 points or 0.7 percent. The Nifty followed a similar pattern, dropping from 24,365 to 23,848, closing at 24,039 with a loss of 207 points or 0.9 percent. The geopolitical conflict has created considerable uncertainty in the markets, overshadowing previous gains from earlier in the week. Analysts noted that despite the day's substantial losses, both indices had ended the week in positive territory, with the Sensex gaining 660 points and the Nifty adding 187 points for the week. Nonetheless, the day highlighted a shift in investor sentiment, with increased caution in response to ongoing geopolitical issues. Major stocks suffered losses, with Axis Bank performing particularly poorly following its recent quarterly results. In contrast, certain stocks such as TCS and UltraTech Cement managed to post gains amidst the turmoil. The overall broader market also faced losses, with both the BSE MidCap and SmallCap indices slipping more than 2 percent. As the situation unfolds, analysts suggest that the bearish sentiment may persist in the short term unless geopolitical conditions stabilize.