Operation Sindoor jolts markets. But investors stay calm

Dalal Street opened to a wave of uncertainty on May 7, 2025, as news broke of India's "Operation Sindoor"—a targeted military strike on terrorist camps in Pakistan and Pakistan-occupied Kashmir. The operation was in retaliation for the Pahalgam attack that claimed 26 lives. Initial market reactions were jittery, with the Sensex plunging nearly 700 points in pre-market trade. However, as trading progressed, the indices stabilised, reflecting investor confidence in India's measured response and robust economic fundamentals. What happened: Operation Sindoor and market response In the early hours of May 7, India launched precision strikes on nine terrorist infrastructure sites in Pakistan and PoK, targeting groups like Jaish-e-Mohammed and Lashkar-e-Taiba. The operation was characterised by its focused and non-escalatory nature, avoiding civilian and military targets.