Friday saw a tense start to benchmark equity indices as investor mood was unsettled by geopolitical concerns with Pakistan, leading to a steep sell-off in a number of industries.
 
By the opening bell, the benchmark BSE Sensex fell more than 500 points, and by 9:24 am, it was down 577.59 points at 79,757.22. At 24,066.30, the wider NSE Nifty50 fell 207.50 points. Early trading saw a jump in volatility, with the india VIX surging more than 5%, indicating increased concern.
 
All of the broader market indices opened lower as well.  Power Grid Corporation, jio Financial Services, Trent, Eicher Motors, and adani Ports were among the top laggards on the Nifty50, while Titan, L&T, BEL, Tata Motors, and Dr. Reddy's were early winners.

"Investor confidence in early trades may be shaken by the intensifying conflict between india and Pakistan," stated Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd.  Noting that sentiment will be dominated by domestic considerations, he cautioned that "profit-taking is likely to continue as investors fearing worse could trim their holdings despite supportive global cues."  The Nifty's strongest technical support was located at 23,501, according to Tapse.
 
Some analysts claim that the market's fundamental strength has not changed despite the early decline.  

"The market would have taken a deeper cut today under normal circumstances," stated Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.  However, the impact is being lessened by two things.  First, there is little chance of a protracted escalation due to India's overwhelming conventional military capabilities.  Second, the macroeconomic environment is still stable, with strong domestic growth prospects, global headwinds in china and the US, and a weak dollar.
 
He cautioned investors against selling in a panic.  "Remain invested, monitor developments and wait for the dust to settle."

Technically speaking, a breakdown move was triggered when the Nifty closed below its 10-day simple moving average for the first time since april 1, according to anand James, Chief Market Strategist at Geojit.  "At this point, the index seems to be moving into the 23,670-23,460 range.  Value purchasing may be attracted by dips below 23,550, but a closing above 24,150 is necessary for a long-term rebound, he stated.  In the short term, he continued, the 23,930–24,050 region might serve as a volatile consolidation zone.
 
It is anticipated that throughout the day, markets will continue to react strongly to any new geopolitical news.  
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G GOWTHAM

09/05/2025 11:32 AM