NEW DELHI – As Indian forces are facing massive blows on the front end, New Delhi also suffered major financial setback on Friday as its stock markets plunged for second consecutive day, wiping out a staggering $83 billion in investor wealth, after rapid escalation in military tensions with Pakistan.
The financial blow comes on heels of Pakistan’s retaliatory strikes after New Delhi launched attacks on what it called “terrorist infrastructure” inside Pakistani territory earlier this week. The conflict, the most intense in decades, has since spiraled into an exchange of missiles, drones, and cross-border artillery fire.
As per reports shared by international media, Nifty 50 dipped 1.1pc, narrowly holding above 24,000 level, while BSE Sensex slipped below crucial 80,000 mark. The losses came after a volatile Thursday session and ended 3-week winning streak for Indian markets—its longest of the year.
At one point during the day, the total market loss threatened to hit $108 billion, highlighting the scale of panic among investors. Experts said markets are reacting sharply to geopolitical risk. If the conflict intensifies further, economic fundamentals could advance.
So far, 12 of thirteen key sectors closed in negative territory. Small-cap and mid-cap stocks were hit particularly hard, falling 1.9% and 0.8%, respectively. The only bright spot was Tata Motors, which soared 8.7% on optimism surrounding a potential UK-US trade deal that could benefit its subsidiary Jaguar Land Rover.
Pakistan-India War
Pakistan and India are now reporting strikes beyond traditional flashpoints, and Pakistan has claimed it destroyed Indian missile defenses after air base attacks.
New Delhi accused Pakistan of “escalatory and provocative” behavior, while Islamabad insists it is only responding to Indian aggression. The global community has called for de-escalation, but tensions remain high.
As diplomatic efforts stall and military operations continue, India now finds itself battling not only a growing security threat but also a significant economic jolt.
