Indian stocks opened lower on Friday after the army said Pakistani forces launched multiple overnight drone and munition attacks along the country’s western border, raising fears of further escalation between the two nuclear-armed neighbours.
The Nifty 50 fell 0.6% to 24,132.1 and the BSE Sensex lost 0.54% to 79,952.51 as of 9:15 a.m. IST. Both the benchmarks opened about 1.5% lower before trimming some of the losses.
All the 13 major sectors declined in the morning.
Indian shares set for muted start amid India-Pakistan tensions
The broader, more domestically focussed small-caps and mid-caps fell 2% and 1%, respectively.
Blasts rang out across the Indian city of Jammu late on Thursday during a Pakistani drone and missile attack on military stations around the Kashmir region on the second day of cross-border clashes that have so far killed nearly four dozen people.
“Developments like these invariably create an environment of uncertainty which will prompt some investors to wait and see how events unfold,” said Peeyush Mittal, portfolio manager at Matthews Asia.
However, investors are unlikely to pull out of Indian markets entirely due to hopes of a trade deal and the country’s economic resilience, he said.
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