Indian stock may open lower, GIFT Nifty down 0.27%, experts say future impact depends if strikes escalate

New Delhi [India], May 7 (ANI): The Indian equity markets are anticipated to start off on a weaker note on Wednesday following military operations initiated by India’s defense forces against terrorist camps located in Pakistan and Pakistan Occupied Kashmir (PoK).

This advancement has escalated geopolitical strains within the area, resulting in a wary atmosphere for investors.

At the time of submitting this report, the Gift
Nifty
The index declined by 0.27 percent, signaling a downturn for the benchmark at the outset.
Nifty
50 index.

Ajay Bagga, an authority on banking and market affairs, informed ANI, “Today, the geopolitical risks looming over the Indian financial sector have become concrete following India’s attacks on PoK and terrorist installations linked to Pakistan. We can anticipate a negative opening for the Indian markets similar to what occurred after reports of the Uri and Balakot airstrikes emerged.”

He further stated that the future effect on markets will hinge on how the circumstances develop over the next few days.

“Future market implications hinge on whether this strike stays limited to today or spreads further. Given the heightened geopolitical risks, we might witness additional sell-offs in the Indian markets,” according to Bagga.

Reactions across other Asian markets were varied. The Hang Seng index in Hong Kong increased by 1.66 percent, whereas Taiwan’s weighted index remained steady yet showed positive gains. South Korea’s KOSPI index climbed by 0.49 percent. Nonetheless, Japan’s Nikkei 225 index had dipped marginally by 0.09 percent when this report was filed.

On Tuesday, the markets experienced profit-taking due to ongoing heightened geopolitical tensions between India and Pakistan, resulting in a downturn.

By the close of trade today at the BSE,
Sensex
had fallen 155.77 points or 0.19 percent to reach 80,641.07. Meanwhile, the
Nifty
At the National Stock Exchange (NSE), the index fell by 81.55 points or 0.33 percent to stand at 24,379.60.

Overall, the rising geopolitical tension has created uncertainty among investors, and all eyes will be on how the situation between India and Pakistan develops in the coming days. (ANI)