Fresh developments on both sides led to heightened vigil and markets sensed prolonged tensions and investors reduced positions with likely impact on foreign inflows as well if the situation continues to deteriorate.
Satish Chandra Aluri,
Lemonn Markets Desk
Mumbai, May 8, 2025: Benchmark indices closed sharply lower on Thursday amid escalating tensions with the neighbouring country. Broader Mid and Small caps also closed lower amid volatility.
After opening largely flat in the morning, market traded in a narrow range till noon, before plunging lower on reports of further escalation in the tensions. Fresh developments on both sides led to heightened vigil and markets sensed prolonged tensions and investors reduced positions with likely impact on foreign inflows as well if the situation continues to deteriorate. Volatility index rose to 21.48 on Thursday, highest since April 9.
On the technical front, Nifty 50 had a weak close as the benchmark slipped below 24200 levels in the last minutes of trading, although it closed at 24273. On the upside, expect 24400 to continue to act as an immediate resistance zone while 24200 acts as immediate support on the downside.
