Worry over conflict with Pakistan erases $83bn from Indian equities

Indexes fell about 0.5% on Thursday and have lost about 1.3% this week

By Agencies
|
May 11, 2025
A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, February 1, 2023.—Reuters

NEW DELHI: Indian shares fell for a second straight session on Friday, losing about $83 billion in market value, as intensified military action between India and Pakistan rattled investors.

The Nifty 50 (.NSEI) fell 1.1pc on Friday but closed above the psychologically key 24,000-point mark, while the BSE Sensex (.BSESN) also lost 1.1pc but ended below the 80,000 level it held the previous day.

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At its lowest, the market was set to lose $108 billion. The indexes fell about 0.5pc on Thursday and have lost about 1.3pc this week, snapping a three-week winning run, their longest this year.

“With so much escalation, domestic markets are jittery because further retaliatory measures from Pakistan could lead to a prolonged, full-fledged conflict,” said Avinash Gorakshaka, head of research at Profitmart Securities. “Fundamentals will take a back seat while sentiment influenced by updates from the conflict could derail market momentum at least for a week if the fighting continues.”

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