India’s stock markets opened in the red on Wednesday as news of Indian military strikes across the border sparked investor caution. The Sensex initially dropped nearly 800 points in pre-open trade, while the Nifty slipped by around 150 points. Both indexes recovered some of their losses shortly after the opening bell but remained volatile.
Most sectoral indices were trading lower, with media, FMCG, and pharma stocks under pressure. However, auto and banking shares showed resilience, posting early gains.
Operation Sindoor Triggers Market Caution
The sharp opening dip followed India’s launch of Operation Sindoor, a military offensive targeting nine terror camps in Pakistan and Pakistan-administered Kashmir. The strikes came in retaliation for the April 22 Pahalgam terror attack, which claimed 26 lives.
In a special media briefing, India’s Foreign Secretary stated the operation was aimed at “destroying terror infrastructure in Pakistan.” The strikes have drawn a sharp response from Islamabad, which confirmed deaths and damage in six locations and reported increased shelling along the Line of Control.
However, several conflicting reports of the death toll have been making the rounds.
Government Conducts Civil Preparedness Drill
Adding to the tense atmosphere, the Indian government launched a nationwide civil defense drill on May 7, covering 244 districts. The exercise is meant to evaluate India’s readiness for emergency situations, especially in light of recent escalations.
Global Market Mood Mixed
Broader Asian markets traded in positive territory, offering some relief. Meanwhile, U.S. markets ended lower overnight, reacting to ambiguous commentary by President Donald Trump on global trade. U.S. indices fell between 0.77% and 0.95%.
However, U.S. futures showed early signs of recovery on news that Treasury Secretary Scott Bessent and trade official Jamieson Greer are set to meet Chinese officials in Switzerland this week—lifting sentiment and pushing Dow futures up by nearly 280 points.
Pakistan Markets Take a Hit
Meaanwhile, Pakistan’s benchmark index opened 5.78% lower in response to India’s air strikes. The country reported eight civilian deaths and widespread damage from the military operation.
Leaders Speak Out
Indian Home Minister Amit Shah posted on X that he was “proud of the armed forces,” calling Operation Sindoor a response to the “brutal killing of our innocent brothers in Pahalgam.”
He added, “The Modi government is resolved to give a befitting response to any attack on India and its people. Bharat remains firmly committed to eradicating terrorism from its roots.”
Foreign Minister S. Jaishankar also weighed in, calling for global “zero tolerance for terrorism.” He shared an image with the words Operation Sindoor, one of the Os replaced by a vermillion pot, widely read as a tribute to the widows of the 26 victims—all of whom were men.
