Indian shares fell for a second straight session, losing about $83 billion in market value, as intensified military action between India and its neighbouring Pakistan rattled investors.The nuclear-armed neighbours have been locked in conflict since Wednesday, when India targeted multiple “terrorist infrastructure” locations in Pakistan in response to a deadly attack in India Kashmir last month.

Pakistan retaliated, and the countries have exchanged cross-border attacks since. The Nifty 50 (.NSEI), opens new tab fell 1.1% on Friday but closed above the psychologically key 24,000-point mark, while the BSE Sensex (.BSESN), opens new tab also lost 1.1% but ended below the 80,000 level it held the previous day. At its lowest, the market was set to lose $108 billion.

The indexes fell about 0.5% on Thursday and have lost about 1.3% this week, snapping a three-week winning run, their longest this year. India’s Nifty 50 snaps its longest weekly winning run in 2025 on Friday.“ With so much escalation, domestic markets are jittery because further retaliatory measures from Pakistan could lead to a prolonged, full-fledged conflict,” said Avinash Gorakshaka, head of research at Profitmart Securities. 

“Fundamentals will take a back seat while sentiment influenced by updates from the conflict could derail market momentum at least for a week if the fighting continues.” The volatility index (.NIFVIX), opens new tab, nicknamed the ‘fear gauge’, rose for an eighth straight session to hit a more-than-one-month high. Other asset classes also suffered, with the central bank forced to step in to stem the rupee’s slide.

Credit: Independent News Pakistan (INP)