India Destroys Lahore Air Defence: VIX Spikes Nearly 15 Per Cent As Tensions With Pakistan Escalate

India-Pakistan News: The India VIX, which measures volatility, spiked nearly 15 per cent in trade on May 8 as tensions between India and Pakistan escalated. The India VIX, also known as fear index, surpassed the 21 mark for the first time since the last month. A higher India VIX value indicates increased market uncertainty and risk, while a lower value suggests increased investor confidence and stability.

However, by the end of the session, India VIX ended at 21.01, up 10.23 per cent. Last time the VIX surpassed this level was on April 7 on heightened fears of global trade war after US President Donald Trump's reciprocal tariffs and retaliation from China.

Consequently, the Sensex slipped 411.97 points, or 0.51 per cent, to end at 80,334.81, and the Nifty 50 shed 140.60 points, or 0.58 per cent, to close at 24,273.80. The broader markets saw even sharper declines as the Nifty Midcap 100 fell 1.95 per cent and the Nifty Smallcap 100 dropped 1.43 per cent.

Drone Attack In Lahore: Pakistan's Air Defence Systems Destroyed

According to Press information Bureau (PIB), Pakistan attempted to engage a number of military targets across 15 locations in Northern and Western India, using drones and missiles. These attempts were foiled by India's air defence systems.

As per PIB, Indian Armed Forces earlier today targeted Pakistan's air defence radars in Lahore. Post this, Pakistan has increased the intensity of firing at the Line of Control (LoC) using mortars and heavy calibre artillery in areas in Kupwara, Baramulla, Uri, Poonch, Mendhar and Rajouri sectors in Jammu and Kashmir.

KSE 100 Index: Pakistan’s Stock Market Crash, India’s Stay Resilient

Meanwhile, Pakistan’s stock market crashed over 7.5 per cent in today’s session, extending losses for the second consecutive session after India carried out military strikes at nine terrorist hideouts across Pakistan and Pakistan-occupied Kashmir on May 7 post-midnight. The military strikes by Indian Armed Forces were carried out as a retaliatory measure to the deadly terrorist attack in Kashmir’s Pahalgam.

In the previous two days, Pakistan’s benchmark KSE 100 index has tumbled over 10 per cent. Since April 22, when the unfortunate Pahalgam terrorist attack occurred, the KSE 100 index has declined over 14 per cent.

On the other hand, India’s stock market has relatively stayed resilient. Since April 22, benchmark Nifty 50 index has edged slightly up by 0.4 per cent.