Domestic stock benchmarks fell sharply on Friday, May 9, tracking the heightened geopolitical tensions between India and Pakistan. BSE Sensex settled at 79,454 at 880 points (or 0.99%), while the NSE Nifty50 fell 266 points to end at 24,008 points, with a second straight session down.
Bank Nifty index also took a hit, down 1.1% to reach 53,600 levels. Sales pressure is high among the big stocks, with sales pressure among the top lags of ICICI Bank, Grid, Ultratech Cement and Shriram Finance.
Defense Inventory Trends
In contrast to the weaker market in the broader market, defense stocks outperformed government expectations of policy push. The Pallas Department of Defense soared 5.6%, making it the highest profitable in the segment. Stocks of Air India (HAL), Bharat Forge and Bharat Dynamics also achieved strong intraday growth, up 2% to 4%.
The rally reported that the center could hold talks with Indian defense manufacturers to strengthen regional tensions to strengthen domestic capabilities.
Geopolitical overhang dent fii emotion
The correction was made sharply after the border crossed a new military confrontation. On Thursday night, India successfully offset Pakistan's drone and missile attacks, targeting the main military areas of Jamu and Pathankot.
Fiis has net buyers at 16 consecutive meetings, with inflows of over Rs 5,000 crore since mid-April and is now expected to become cautious. Analysts believe the current sell-off is part of risk-profit bookings, triggered by increased geopolitical uncertainty.
Now, what should investors do?
Market experts recommend keeping off-site and avoiding aggressive positions until clarity appears on the safety side. Key support for Nifty is close to 23,850, and 24,300 will act as resistance. For bank Nifty, the immediate support is 53,000.
