Indian shares fall after India says Pakistan launched multiple attacks
All 13 major sectors declined in the morning. The broader, more domestically focused small-caps and mid-caps fell 2% and 1%, respectively
Indian stocks opened lower today (9 May) after the army said Pakistani forces launched multiple overnight drone and munition attacks along the country's western border, raising fears of further escalation between the two nuclear-armed neighbours.
The Nifty 50 fell 0.6% to 24,132.1 and the BSE Sensex lost 0.54% to 79,952.51 as of 9:15am IST.
Both the benchmarks opened about 1.5% lower before trimming some of the losses.
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All 13 major sectors declined in the morning. The broader, more domestically focused small-caps and mid-caps fell 2% and 1%, respectively.
Blasts rang out across the Indian city of Jammu late yesterday (8 May) during a Pakistani drone and missile attack on military stations around the Kashmir region on the second day of cross-border clashes that have so far killed nearly four dozen people.
"Developments like these invariably create an environment of uncertainty which will prompt some investors to wait and see how events unfold," said Peeyush Mittal, portfolio manager at Matthews Asia.
However, investors are unlikely to pull out of Indian markets entirely due to hopes of a trade deal and the country's economic resilience, he said.
