India strikes Pakistan: Markets wobble amid rising tensions
There have been initial market reactions to India's attack on Pakistan. Bloomberg reports that Indian stocks recovered after an initial decline, while the rupee weakened slightly and bond yields dipped by two basis points. The main Indian index recovered early losses.
Indian forces launched "Operation Sindoor" against Pakistan on Tuesday. Strikes on "terrorist infrastructure" were confirmed. According to a statement from the Indian government, the aim was precise, balanced actions without escalating the conflict. A spokesperson for the Pakistani army also announced that his country would respond to these actions.
India attacked Pakistan. Markets react
Ahfaz Mustafa, CEO of Ismail Iqbal Securities Pvt, an Indian investment firm based in Karachi, told Bloomberg that markets have already responded to news of India’s strikes. He added that the Pakistani market is expected to open sharply lower amid rising tensions, and investors will now focus on whether this marks a de-escalation or a further intensification of the conflict.
The NSE Nifty 50 index, the main stock index of large companies listed on the National Stock Exchange of India, fell by 0.7% in the first few minutes of Wednesday's session. According to Bloomberg, the yield on India's 10-year government bonds decreased slightly to 6.34%, while the rupee experienced only a modest decline.
After the drop, a return to previous levels was also evident on the BSE Sensex index, which includes 30 well-established companies on the Bombay Stock Exchange. The maximum deviation in this case was slightly over 0.2% in the morning.
