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Updated May 7th 2025, 15:57 IST
Operation Sindoor Affects Markets: How Did Equities React To Uri Strike, Balakot Strike, Kargil War?
The Indian stock markets were steady during the trading session on Wednesday, May 7, 2025, despite escalating tensions between India and Pakistan.
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The Indian stock markets were steady during the trading session on Wednesday, May 7, 2025, despite escalating tensions between India and Pakistan amid Operation Sindoor.
While the BSE Sensex index opened barely 692 points lower, it soon recovered to trade around flatline for the better part of the day. At 12:20 pm, the index was trading at 80,620 level, down by 21 points.
Likewise, the NSE Nifty50 index declined 146 points at opening, but recovered its losses to trade at 24,388, up by 8 points.
How Was Pakistan Stock Market Performing?
The stock exchange of Pakistan crashed 5.5% during early morning trade on Wednesday.
How Did The Indian Markets React To Similar Events Earlier?
There have been a number of interactions between India and Pakistan that have made it to the history textbooks, including Kargil war, Parliament attacks, Uri strike as well as Pulwama attack.
Despite these factors the Sensex and Nifty have consistently demonstrated immunity to these violent attacks. Whatever impact has been observed was in the form of modest and short-lived market corrections.
"In terms of the historical data every escalation between India and Pakistan has led to a short-term dip but that has also led to a buying interest coming in at lower levels," said Sugandha Sachdeva, Founder of SS WealthStreet.
Nifty 50 Performance During Historical Events
| Event | Date | 1M Before | 1 M After | 3 M Before | 6 M After | 12 M After |
| Kargil War 1999 | May 3, 1999 | -8.3% | 16.50% | 34.50% | 31.60% | 29.40% |
| Parliament Attack 2001 | Dec 13, 2001 | 10.10% | -0.8% | 5.30% | -0.8% | -1.3% |
| Mumbai 26/11 Attacks 2008 | Nov 26, 2008 | 9.00% | 3.80% | -0.7% | 54.00% | 81.90% |
| Uri Attack & Surgical Strikes 2016 | Sep 18, 2016 | 1.30% | -1.2% | -7.3% | 4.30% | 15.60% |
| Pulwama Attack & Balakot 2019 | Feb 14, 2019 | -1.3% | 6.30% | 3.80% | 1.70% | 12.70% |
What Is Operation Sindoor?
India, in the early hours of May 7, launched a "calculated and restricted" missile attack on nine terror infrastructures in Pakistan and Pakistan Occupied Kashmir (POK). This operation is called operation Sindoor.
Published May 7th 2025, 15:57 IST