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Markets take a hit as tensions flare at the border

Sensex drops over 400 points, Nifty below 24,300; investors turn risk-averse amid geopolitical jitters

Sensex drops over 400 points, Nifty below 24,300; investors turn risk-averse amid geopolitical jittersAdobe Stock

Indian equity markets closed lower on Thursday, May 8, 2025, as escalating geopolitical tensions between India and Pakistan weighed on investor sentiment.

The Sensex fell 412 points to close at 80,335, while the Nifty shed 141 points, ending at 24,274. The mood? Nervous.

Markets opened firm but lost steam as reports of cross-border action emerged. By afternoon, the sell-off had spread across sectors — only IT held its ground, while metal, pharma and consumer durables took a beating.

Index check

Index Closing level Change
Sensex 80,334.81 ↓ 411.97 pts (−0.51 per cent)
Nifty 50 24,273.80 ↓ 140.60 pts (−0.58 per cent)
Nifty Bank 54,365.65 ↓ 245.25 pts (−0.45 per cent)

What dragged the market down

  • Geopolitical nerves: After India reportedly struck targets across the border, risk appetite cooled quickly.
  • Global cues: Weakness in Asian markets and muted US futures didn't help.
  • Profit-booking: Traders booked gains in recent outperformers, especially small- and mid-cap names.

Sector snapshot

  • Metals: Down 1.79 per cent — global demand concerns persist
  • Healthcare: Down 1.65 per cent — margin worries weigh
  • Consumer durables: Down 1.25 per cent — discretionary spend under watch
  • Small-cap index: Down 1.05 per cent — the froth is being skimmed

The Nifty IT index was the lone gainer, up 0.23 per cent, as defensive bets came back into favour.

Market breadth tells the story

Out of over 2,500 stocks traded on the NSE:\

  • Advances: 674
  • Declines: 1,868

That's a clear sign that the sell-off wasn't selective — it was sweeping.

Investor takeaway

Markets don't like surprises. And geopolitical surprises are the worst kind.

With the VIX still under control and earnings season in full swing, volatility could go either way from here. For now, it's caution over conviction, and defence over aggression.

Long-term investors may do well to sit tight.

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Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.

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