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Sensex, Nifty trade in deep red on rising India-Pakistan tension
May-09-2025

Indian equity benchmarks made gap-down opening on Friday amid worries that the escalation of conflict with Pakistan and rising oil prices overnight. India on Thursday night neutralized Pakistan military's attempt to hit military stations in Jammu, Pathankot, Udhampur and some other locations with missiles and drones. Sensex and Nifty are trading under pressure in early deals despite continued inflows from Foreign Institutional Investors (FIIs). Traders overlooked reports that India and Chile signed terms of reference (ToRs) to negotiate a comprehensive free trade agreement.

On the global front, Asian markets are trading mostly higher following the broadly positive cues from Wall Street overnight, amid easing concerns about the ongoing trade war after US President Donald Trump unveiled the framework of a trade agreement with the U.K. The Japanese markets are leading regional gains amid hopes that the country will reach a trade agreement with the U.S. in June. 

Back home, shares of Indian Defence-related companies surged upto 6 per cent after ongoing geopolitical tensions between India and Pakistan escalated on Thursday. In stock specific development, Britannia rose after the company reported its results.

The BSE Sensex is currently trading at 79632.06, down by 702.75 points or 0.87% after trading in a range of 78968.34 and 80032.93. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.19%, while Small cap index was down by 1.71%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.42%, Consumer Durables up by 0.62% and Industrials up by 0.50%, while Realty down by 2.89%, Utilities down by 2.49%, Power down by 2.25%, FMCG down by 1.35% and Basic Materials down by 1.17% were the top losing indices on BSE.

The few gainers on the Sensex were Titan Company up by 4.20%, Larsen & Toubro up by 4.13%, Tata Motors up by 3.50% and Asian Paints up by 0.08%. On the flip side, Power Grid down by 2.74%, ICICI Bank down by 1.93%, Ultratech Cement down by 1.87%, Hindustan Unilever down by 1.60% and Bajaj Finserv down by 1.57% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has relaxed norms for investments by foreign portfolio investors (FPIs) in corporate debt securities through the general route by withdrawing certain requirements to comply with the short-term investment limit and the concentration limit. The withdrawal was with a view to providing greater ease of investment to FPIs.

At present, investments by FPIs in corporate debt securities through the general route are subject to the short-term investment and concentration limit. General route 1 for investment in government and corporate debt securities by FPIs, subject to specified investment limits and macroprudential limits.

The short-term investment limit refers to the cap on the portion of FPI investments in debt instruments that mature within one year. It was intended to discourage volatile, short-duration foreign inflows. The concentration limit restricted the extent to which an FPI could invest in the debt instruments of a single corporate issuer to reduce the risk of overexposure.

The CNX Nifty is currently trading at 24032.30, down by 241.50 points or 0.99% after trading in a range of 23935.75 and 24164.25. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 3.92%, Larsen & Toubro up by 3.79%, Bharat Electronics up by 3.73%, Tata Motors up by 3.26% and Hero MotoCorp up by 0.13%. On the flip side, Power Grid down by 3.18%, JIO Financial down by 2.49%, NTPC down by 2.13%, Ultratech Cement down by 2.11% and Tata Consumer Products down by 2.09% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 514.78 points or 1.39% to 37,443.41, Taiwan Weighted jumped 328.61 points or 1.6% to 20,872.01, Straits Times rose 23.08 points or 0.6% to 3,871.30, Jakarta Composite gained 16.94 points or 0.25% to 6,844.69, Hang Seng advanced 1.9 points or 0.01% to 22,777.82. On the other hand, Shanghai Composite weakened 8.62 points or 0.26% to 3,343.38 and KOSPI was down by 1.82 points or 0.07% to 2,577.66.
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