Fri May 09 01:30:00 UTC 2025: **India Retaliates After Pakistan Attacks; Stock Market Dips**
Mumbai, India (May 8, 2025) – India’s stock market experienced a significant downturn today, with the Sensex falling 412 points (0.51%) to close at 80,334.81 and the Nifty dropping 140.60 points (0.58%) to 24,273.80. The decline was attributed to escalating tensions between India and Pakistan following a series of cross-border attacks.
Indian officials reported that the armed forces successfully thwarted multiple Pakistani military attempts to target several Indian cities using drones and missiles. In response, India launched retaliatory strikes, targeting air defense systems in Pakistan, including one in Lahore, which was reportedly neutralized. This follows earlier Indian preemptive strikes on Wednesday that destroyed nine terror sites in Pakistan and Pakistan-occupied Kashmir.
The market volatility was further influenced by concerns about the Federal Reserve’s (FED) assessment of potential inflationary pressures and unemployment risks due to U.S. tariffs. However, global markets remained largely stable, supported by positive expectations surrounding a potential U.S.-U.K. trade deal and ongoing trade talks with China. Foreign Institutional Investors (FIIs) invested ₹2,585.86 crore in Indian equities on Wednesday.
Despite the negative close today, the market had shown early strength, with the Sensex reaching a high of 80,927.99 before selling in banking, FMCG, and auto sectors led to the downturn. While the global oil benchmark Brent crude climbed 1%, to $61.75 a barrel, the Indian market reflected the heightened geopolitical risks.
First Piper 