Indian stocks recover after "Operation Sindoor" strikes Pakistan
There are initial market reactions to India's attack on Pakistan. Indian markets saw a recovery in equities following an initial decline, while the rupee experienced a modest depreciation and bond yields slipped by two basis points, according to Bloomberg. The main Indian index recovered its 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 to carry out 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
According to Bloomberg, markets have already reacted to reports of India’s strikes, with the Pakistani market expected to open significantly lower as tensions rise. Ahfaz Mustafa, CEO of Ismail Iqbal Securities Pvt, an investment firm based in Karachi, noted that investors are now looking beyond the immediate conflict to assess whether this marks the beginning of de-escalation or if further escalation is ahead.
The NSE Nifty 50 index, the primary 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. Bloomberg reports that the yield on 10-year Indian government bonds declined by around 2 basis points to 6.34%, while the rupee experienced slight losses.
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.
