Operation Sindoor: Markets Open Flat as Tensions Rise Post Strike; Defence, PSU Bank Stocks Buck Trend

Operation Sindoor Impact On Stock Market: Indian equity markets opened on a soft note and remained under pressure Wednesday morning following India’s pre-dawn military strikes under Operation Sindoor, carried out in retaliation for the April 22 Pahalgam terror attack. As of 9:47 AM, on May 7, the Nifty 50 was trading at 24,346.85, down 32.75 points or -0.13 per cent, while the BSE Sensex stood at 80,556.80, lower by 84.27 points or -0.10 per cent.

Despite the broader market weakness, defence and PSU bank stocks outperformed. Shares of Hindustan Aeronautics Ltd (HAL) rose 1.7 per cent, Bharat Dynamics Ltd (BDL) gained 0.7 per cent, Mazagon Dock Shipbuilders advanced 2 per cent, Cochin Shipyard edged up 1.1 per cent, and Garden Reach Shipbuilders jumped 2.5 per cent. HAL and BDL are among India’s key defence manufacturers, expected to see stronger order flows amid rising security concerns.

The Nifty PSU Bank index was up 1.10 per cent at 6,303.90, with Union Bank of India leading gains at 2.47 per cent, followed by Punjab National Bank up 2.16 per cent and Canara Bank gained 1.68 per cent.

India’s coordinated strikes, involving the Army, Navy, and Air Force, targeted nine terror camps across Pakistan and Pakistan-occupied Kashmir at 1:44 a.m., triggering heightened military alert along the Line of Control. Pakistan has termed the action an “act of war,” stoking fears of further escalation.

“Focused strikes were carried out on nine terrorist infrastructure sites in Pakistan and Pakistan-occupied Jammu and Kashmir, targeting the roots of cross-border terror planning,” said MoD on X.

“No Pakistani military facilities have been targeted,” a PIB release stated. Operation Sindoor has been carried out on terrorist organisations including Lashkar-e-Taiba (LeT), Jaish-e-Mohammed, and Hizbul Mujahideen, the release added.

Speaking on the development US President Donald Trump said: “I just hope it ends very quickly.”