Daijiworld Media Network – Mumbai
Mumbai, May 9: Stock markets remained under pressure for the second consecutive day on Friday, eroding investor wealth by a massive Rs 7 lac cr, as rising tensions between India and Pakistan triggered widespread selling across sectors.
The Sensex tanked 880.34 points, or 1.10%, to close at 79,454.47, while the Nifty shed 265.80 points, or 1.10%, to settle at 24,008. This came a day after both indices had posted sharp losses, bringing the two-day fall in the BSE benchmark to 1,292.31 points, or 1.60%.
The sharp selloff was triggered by heightened geopolitical tensions after India foiled multiple Pakistani drone and missile attacks targeting military bases in Jammu and Pathankot late Thursday night.
As a result, the market capitalisation of BSE-listed companies plunged by Rs 7,09,783.32 cr to Rs 4,16.40 lac cr (USD 4.86 trillion) in just two sessions.
“Domestic cues, particularly the intensifying Indo-Pak conflict, have weighed heavily on sentiment, despite stability in global markets,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Heavyweights like ICICI Bank, Power Grid, UltraTech Cement, Bajaj Finance, HDFC Bank, Reliance Industries, Adani Ports, and ITC were among the biggest drags on the Sensex. On the brighter side, Titan, Tata Motors, Larsen & Toubro, and State Bank of India managed to buck the trend and closed in the green.
Sectoral indices reflected the nervousness realty dropped 2.08%, utilities 1.50%, financial services 1.40%, and power 1.11%. However, capital goods (1.67%) and consumer durables (1.29%) posted gains.
Vinod Nair, Head of Research at Geojit Financial Services, noted, “Though some level of conflict was priced in, the intensity caught investors off-guard. Markets expect the situation to remain short-lived, considering India’s strategic edge and Pakistan’s economic constraints.”
On Friday, 2,522 stocks declined, 1,343 advanced and 145 remained unchanged on the BSE, reflecting widespread caution.
Despite the volatility, Foreign Institutional Investors (FIIs) continued their participation till Thursday, even as retail investors turned wary amid the geopolitical uncertainty.