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Stock Market Feels Heat from India-Pak Escalation: Sensex Crashes 650 Points in Early Trade

On Friday, 9 May 2025, Indian stock markets opened sharply lower following overnight geopolitical escalations with Pakistan, as tensions spiked after drone and missile attacks near the Jammu and Kashmir border. The Sensex and Nifty both declined by over 0.5 per cent, reflecting heightened investor anxiety amid continued military engagement and bearish technical indicators.
Stock Market Crash

Reports confirm that Indian forces successfully intercepted Pakistani drones, but the risks of escalation continue to loom over the markets.

Indian markets opened in the red on Friday, 9 May 2025, as tensions between India and Pakistan escalated following targeted drone and missile attacks by Pakistan along the International Border in Jammu and Kashmir.
The BSE Sensex opened at 79,654.73, down 680.08 points or 0.85 per cent, while the NSE Nifty opened at 24,132.30, declining by 141.50 points or 0.58 per cent. Pakistani drones were reportedly neutralised by Indian Army Air Defence Units in the Naushera sector, but investor nerves were frayed as the conflict deepened overnight.
Equity benchmarks had already ended lower on Thursday, with the Sensex falling by 411.97 points (0.51 per cent) to close at 80,334.81 and the Nifty 50 losing 140.60 points (0.58 per cent) to settle at 24,273.80, dragged down by geopolitical fears and late-session selling pressure.
The downtrend continues amid high volatility, with the GIFT Nifty trading around 23,974—nearly 298 points below the previous Nifty futures close—suggesting a bearish opening. Analysts attribute the slide to fragile investor sentiment, technical breakdowns, and the growing risk of military escalation.
Market Expert Commentary & Technical Analysis
“The market remains weak as long as Sensex trades below 80,900. It could retest the 80,000–79,700 levels. If it rises above 80,900, we might see a move towards 81,200–81,400,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
The Nifty 50 also showed signs of bearish reversal. “A long bear candle formed on Thursday, signalling sharp downside reversal. A break below 24,200 may open support at 23,850,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. He added that increased volatility and geopolitical uncertainty are driving market nervousness.
Om Mehra of SAMCO Securities noted that Nifty 50 is hovering near its 9 EMA support. “A move below this may weaken the short-term trend. However, it remains above the 20 and 50-day EMAs, keeping the broader trend intact,” he said. He identified resistance at 24,450 and support at 24,050 and 23,900.
Hrishikesh Yedve of Asit C. Mehta Investment Intermediates Ltd said, “As long as Nifty remains below 24,590, the upside remains capped. A breach above this could extend gains to 24,800–24,850. Key support is around 24,050.”
VLA Ambala, Co-Founder of Stock Market Today, added, “Nifty has formed a dark cloud cover pattern, suggesting a sell-on-rise strategy. Key resistance lies at 24,450 and 24,520.”
Bank Nifty Outlook
The Bank Nifty index declined by 245.25 points or 0.45 per cent to end Thursday at 54,365.65. “It faced resistance near 55,000 and saw heavy profit booking,” said Yedve. “Immediate resistance is at 55,000–56,000; key support lies at 53,890.”
Om Mehra noted that Bank Nifty has slipped below the 23.6 per cent Fibonacci retracement level, placing the next support near 53,500. He observed a bearish candle on the daily chart and a lower low formation on the hourly chart. “Daily RSI suggests a pause in momentum, not a complete breakdown.”
Bajaj Broking pointed out that Bank Nifty’s shallow retracement—taking 10 sessions to retrace only 38.2 per cent of a six-session rally—signals consolidation before the next potential leg up. “Key support lies at the 53,000–53,500 range,” the firm added.
Geopolitical Context & Investor Caution
Thursday’s sharp selloff and Friday’s negative opening highlight investor concern over the military situation. Reports confirm that Indian forces successfully intercepted Pakistani drones, but the risks of escalation continue to loom over the markets.
While some analysts believe the broader uptrend remains intact due to macroeconomic strength, the immediate outlook remains clouded by uncertainty and technical resistance levels. As geopolitical tension continues to dictate market direction, traders are advised to adopt cautious, level-based strategies.
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Working as Copy Editor at the Business Desk of Times Now Digital. Dedicated towards crafting interesting financial stories. Previously covered financi...View More

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