Operation Sindoor Sparks Market Mayhem: 5 Shocking Reasons Sensex Crashed 800 Points Today

Indian stock markets witnessed sharp declines on Friday, with the Sensex plunging 800 points and the Nifty50 slipping below 24,100, erasing ₹5 lakh crore in investor wealth, as military tensions under Operation Sindoor rattled sentiment. Geopolitical risks intensified after Pakistan’s attempted drone attacks, prompting high alerts in Jammu & Kashmir, Punjab, and Rajasthan. Despite the sell-off, analysts underscored India’s structural resilience, citing robust GDP growth forecasts, sustained FII inflows (₹2,008 crore on Thursday), and a weakening dollar as stabilizing factors.

The rupee faced its steepest drop in 30 months, sliding to 85.58/USD, driven by safe-haven dollar demand. While Pakistan’s markets crashed post-recent conflicts, India’s long-term outlook remains anchored to domestic growth and global investor confidence. Global markets traded mixed, with U.S. stocks gaining on trade optimism, while gold prices rebounded as risk aversion lingered. Experts advise investors to avoid panic, emphasizing that India’s macroeconomic fundamentals and strategic advantages outweigh short-term volatility, though caution prevails until tensions de-escalate.

Operation Sindoor Sparks Market Mayhem: 5 Shocking Reasons Sensex Crashed 800 Points Today

Indian equity markets faced significant turbulence on Friday as geopolitical tensions between India and Pakistan intensified, sparking investor anxiety. The benchmark indices, Nifty50 and BSE Sensex, nosedived amid reports of escalating military actions under Operation Sindoor. By mid-morning, the Nifty50 had slipped below 24,100, trading at 24,035 (down 0.98%), while the Sensex plummeted 746 points to 79,588.71. The sell-off erased nearly ₹5 lakh crore from investor wealth, reflecting heightened risk aversion.  

Why Markets Are Reacting—and Why Resilience May Prevail 

Despite the sharp intraday drop, analysts highlight India’s structural economic strength as a buffer against prolonged turmoil. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “India’s conventional warfare superiority and robust macroeconomic fundamentals—like projected high GDP growth and a stable rate environment—are shielding markets from deeper cuts.” Foreign Institutional Investors (FIIs) have reinforced this confidence, injecting ₹2,008 crore into Indian equities on Thursday, extending a 16-session buying streak.  

Key factors underpinning market stability include:  

• Global tailwinds: A weakening US dollar and potential Fed rate cuts.  

• Domestic momentum: Strong corporate earnings and manufacturing growth.  

• Strategic FII inflows: India’s position as a preferred emerging market amid global uncertainty. 

Ruyapee Under Pressure, Global Markets Mixed 

The Indian rupee faced its steepest single-day fall in over 30 years, dropping 81 paise to 85.58/USD, driven by safe-haven dollar demand and geopolitical risks. Anuj Choudhary of Mirae Asset Sharekhan warned of further rupee volatility if tensions escalate, though FII inflows could cushion drastic declines.  

Globally, markets reacted divergently:  

• US stocks rose on optimism around US-UK trade talks and potential US-China tariff reductions.  

• Asian equities edged higher, tracking Wall Street’s gains.  

• Gold prices rebounded as investors sought safety amid uncertainty. 

Regional Impact and Investor Sentiment 

Northern states like Punjab, Rajasthan, and Jammu & Kashmir remain on high alert following Pakistan’s attempted drone incursions. Chandigarh residents were advised to stay indoors after air sirens sounded—a stark reminder of the conflict’s proximity to civilian hubs.  

Despite short-term panic, experts advise against knee-jerk portfolio changes. “India’s growth narrative remains intact. Investors should stay calm, avoid panic selling, and focus on long-term fundamentals,” emphasized Vijayakumar.  

What’s Next for Markets? 

Market volatility is expected to persist until geopolitical risks subside. Key triggers to watch:  

• De-escalation progress between India and Pakistan.  

• US-China trade talks: Outcomes could influence global risk appetite.  

• Domestic institutional activity: DIIs sold ₹596 crore on Thursday, signaling caution. 

The Bigger Picture: India’s Economic Fortitude 

While Operation Sindoor has injected uncertainty, India’s equity resilience contrasts sharply with Pakistan’s market collapse post-April’s Pahalgam attack. This divergence underscores India’s entrenched macroeconomic stability and investor trust. For now, prudence—not fear—should guide investment decisions as markets navigate this turbulent phase.