Sensex Slides Amid Indo-Pak Tensions: Financial Markets React

The benchmark Sensex faced a decline of nearly 412 points during a tumultuous trading session on Thursday, as investors responded to growing geopolitical tensions between India and Pakistan. This sell-off was particularly noted in banking, FMCG, and auto stocks.

The session witnessed the Sensex opening on a positive note, reaching a peak in late-morning trade, but it lost momentum by the afternoon owing to escalated Indo-Pak tensions. The NSE Nifty also closed in the red, shedding 140.60 points. The instability in financial markets aligns with military escalations, as India's armed forces countered Pakistani military actions, including the destruction of a Pakistani air defense system in Lahore.

With global markets remaining buoyant, particularly with potential US trade deals, concerns persist locally. Real estate, oil and gas, and automotive sectors were among the hardest hit. Foreign Institutional Investors made notable purchases, indicating interest amidst uncertainty, yet the situation continues to unfold with potential implications for the equity markets.

(With inputs from agencies.)