The GIFT Nifty is signaling a potential gap-down opening as tensions escalate along the Line of Control (LoC). In a bold move, India executed airstrikes targeting nine terrorist camps located in Pakistan. This development comes amid ongoing trade discussions set to take place in Switzerland between the US and China, which are expected to impact global markets.
On Tuesday, the NSE Nifty 50 concluded the trading session down by 82 points, or 0.33%, settling at 24,380. Meanwhile, the BSE Sensex fell by 156 points, or 0.19%, closing at 80,641.
India’s Strategic Response: Operation Sindoor
The Indian government has launched “Operation Sindoor,” striking terrorist camps in both Pakistan and Pakistan-occupied Kashmir (PoK). This retaliatory action follows the tragic Pahalgam terror attack on April 22, which resulted in the loss of 26 lives. The Ministry of Defence confirmed that nine sites were targeted, ensuring that no Pakistani military installations were hit. In response, Pakistan initiated heavy artillery fire along the LoC in Jammu and Kashmir.
Asian Markets React to Trade Talks
As of May 7, several Asian markets displayed positive momentum, buoyed by the anticipated resumption of US-China trade talks. Japan’s Nikkei 225 started strong but later dipped by 0.2%, losing 73 points to settle at 36,757. The Kospi in South Korea saw a 0.43% increase, trading at 2,570, while the Taiwan Weighted Index rose by 0.34% to reach 20,592. The Hang Seng Index in Hong Kong had yet to commence trading.
US Markets Experience Continued Decline
On the other side of the globe, the US stock markets continued to feel the pressure, with losses extending from Tuesday’s trading. Following statements from President Trump regarding global trade negotiations, the Dow Jones Industrial Average dropped by 389.83 points or 0.95%, closing at 40,829. The S&P 500 fell 0.77% to finish at 5,606.91, while the Nasdaq Composite decreased by 0.87%, settling at 17,689.66.
Currency Movements: The US Dollar Strengthens
The US Dollar Index (DXY), which tracks the dollar against six major currencies, rose by 0.26% to 99.50 on Wednesday morning. This index reflects the dollar’s strength relative to currencies such as the British Pound, Euro, Japanese Yen, and others. Meanwhile, the Indian rupee weakened by 0.20%, closing at 84.43 per dollar on May 6.
Crude Oil Prices on the Rise
In the commodities market, crude oil prices saw an upward trend on Wednesday. WTI crude was priced at $59.59, marking a 0.85% increase, while Brent crude prices rose by 0.68%, reaching $62.56.
Investment Trends: FII and DII Insights
Provisional data from the NSE indicates that foreign institutional investors (FII) were net buyers of shares worth ₹3,794.52 crore on May 6, while domestic institutional investors (DII) were net sellers, offloading shares worth ₹1,397.68 crore.
Gold Prices Surge Amidst Tensions
With rising geopolitical tensions between India and Pakistan, gold prices have skyrocketed to unprecedented levels. Currently, the price for 24-carat gold stands at ₹97,830 per 10 grams, marking a 12.32% increase over the past month. Additionally, 22-carat gold is priced at ₹89,678, and 18-carat gold is available for ₹73,373.
As we navigate these turbulent times, staying informed about market movements and geopolitical developments is crucial for investors and stakeholders alike.
