Indian stock market: The Indian stock market ended its longest weekly winning streak of 2025, pressured by rising geopolitical tensions between India and Pakistan that unsettled investor confidence and pushed indices down.
Key domestic benchmarks, the Sensex and Nifty 50, faced significant volatility due to escalating border hostilities. The conflict began on Wednesday after India struck terrorist camps in Pakistan and PoK, responding to a deadly attack in Kashmir last month. Pakistan countered the strikes, leading to ongoing cross-border exchanges between the two nuclear-armed nations.
The major equity indices saw significant declines this week, largely due to rising geopolitical tensions between India and Pakistan after reports of drone and missile strikes. The market downturn deepened on the week’s last trading day, following the Indian Army’s announcement of several overnight drone and missile attacks by Pakistani forces, which amplified concerns about a potential escalation.
“The Indian markets have been resilient over the years, despite similar situations. Investors should zoom out and look at the markets from a broader perspective. Indian equity markets stand on strong fundamentals and we don’t have much to worry about. Well-diversified portfolios will weather this storm,” said Vaibhav Porwal, Co-Founder, Dezerv.
How’s market likely to perform amid ongoing India-Pakistan conflict?
According to market experts, markets poised for positive reaction on strategic win against terrorism. The announcement of a “full and immediate ceasefire” between India and Pakistan marks a significant diplomatic and strategic victory for India in its fight against terrorism.
“This de-escalation removes a key overhang on investor sentiment and is likely to be seen as a major positive development by financial markets,” said Prashanth Tapsi, AVP – Research at Mehta Equities.
Historically, markets have shown resilience and a tendency to recover following such geopolitical de-escalations. If the current stability holds same over the next 24–48 hours, with no retaliatory actions or escalatory rhetoric from either side, markets are likely to respond constructively, Tapsi added.
Key technical levels to watch out
Tapsi further added that a gap-up opening of 200–300 points on the benchmark indices is expected on Monday, as investor confidence returns. However, volatility is likely to persist, driven by the ongoing earnings season and global uncertainties—especially tariff-related developments.
“Nifty holds above 24000, Technically, now 23500 mark becomes a key make-or-break support. More waterfall of selling expected below the same with Resistance at 24275/24401.
Defense and Banking sectors may see renewed buying interest as immediate geopolitical risks subside while Broader indices are also likely to recover recent losses from the past 2–3 sessions, aided by improving sentiment. All eyes would be on FII who turned negative on Friday trading session after continues net buyers in last 2 weeks,” he added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
