New Delhi, May 7
Indian stock markets are expected to open lower on Wednesday after the Indian defence forces launched anti-terror strikes targeting terror camps in Pakistan and Pakistan-occupied Kashmir (PoK).
The development has raised geopolitical tensions in the region, leading to a cautious mood among investors.
At the time of filing this report, the Gift Nifty index was down by 0.27 per cent, indicating a negative start for the benchmark Nifty 50 index.
Ajay Bagga, a Banking and Market Expert, told ANI, "The geopolitical risk that was hanging over the Indian markets has got crystallised today with the Indian strikes on PoK and Pakistan-based terror camps. Indian markets will open with a negative gap as we saw when the Uri and Balakot strike news was announced."
He added that the future impact on markets will depend on how the situation evolves in the coming days.
"The future impact on the market will depend on whether this strike remains contained to today or if it expands. Geopolitical risk remains elevated and we could see some more selling in the Indian markets," Bagga said.
The reaction in other Asian markets was mixed. The Hang Seng index in Hong Kong gained 1.66 per cent, while Taiwan's weighted index was flat but in the green. South Korea's KOSPI index rose by 0.49 per cent. However, Japan's Nikkei 225 index was slightly down by 0.09 per cent at the time of filing this report.
The markets witnessed profit-booking on Tuesday amid the continued rising geopolitical tensions between India and Pakistan and ended on a negative note.
At the end of the trading session today, BSE Sensex was down 155.77 points or 0.19 per cent at 80,641.07. While the Nifty 50 at the National Stock Exchange (NSE) was down 81.55 points or 0.33 per cent at 24,379.60.
Overall, the rising geopolitical tension has created uncertainty among investors, and all eyes will be on how the situation between India and Pakistan develops in the coming days.
- ANI