Stock market today: Indian defense stocks such as Hindustan Aeronautics and Mazagon Dock Shipbuilders traded flat on Wednesday, May 7, despite escalating tensions between India and Pakistan after India carried out its deepest strikes inside Pakistani territory since 1971.
According to market experts, defense stocks have already witnessed a significant run-up in recent sessions, particularly following the Pahalgam terror attack. As a result, investors may be booking profits or adopting a wait-and-watch approach amid geopolitical uncertainties.
Shares of Bharat Dynamics, Hindustan Aeronautics, Bharat Electronics, and BEML were trading flat as of 11:30 a.m. on Wednesday. Shipbuilding stocks such as Mazagon Dock Shipbuilders, Garden Reach Shipbuilders, and Cochin Shipyard mirrored the same trend.
On May 7, 2025, India launched a series of missile strikes into Pakistani territory and Pakistan-administered Kashmir under “Operation Sindoor,” targeting nine locations alleged to be militant infrastructure.
This action was in retaliation for the April 22 Pahalgam attack in Indian-administered Kashmir, which resulted in the deaths of 26 Indian tourists and was attributed to Pakistan-based militant groups.
The Ministry of Defence stated that nine sites were hit during the mission, which was described as “focused, measured, and non-escalatory” in nature. The strikes were aimed at specific terrorist camps used to plan and direct attacks on Indian soil.
“Altogether, nine sites have been targeted. Our actions have been focused, measured, and non-escalatory in nature,” the Defence Ministry was quoted as saying.
The ministry further clarified that the operations did not target Pakistani military facilities, underscoring India’s intent to avoid escalation.
Indian stock market remains range-bound despite geopolitical tensions
Following the missile strikes into Pakistani territory, the Indian stock market traded in a narrow range on Wednesday, May 7. In contrast, the Pakistan Stock Exchange saw a sharp crash, with the benchmark KSE-30 Index tumbling as much as 6.1% to its lowest level since December 4 before recovering some losses.
Market experts don’t foresee any major immediate impact on the Indian stock market. They noted that India did not target Pakistani military bases directly and the strikes were calculated and limited in scope.
While experts acknowledge that tensions between India and Pakistan may weigh on market sentiment, they do not expect a sharp downside.
“What stands out in ‘Operation Sindoor’ from the market’s perspective is its focused and non-escalatory nature. We have to wait and watch how the enemy reacts to these precision strikes by India. The market is unlikely to be impacted by the retaliatory strike by India, since that was known and already discounted,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, the trade deal with the UK provides India a potential template for its ongoing negotiations with the US. Additionally, local assets were supported by a rebound in regional markets, driven by China’s economic stimulus measures.
India’s markets have recently caught the attention of global funds, drawn by the country’s resilience to trade uncertainty and support from the Reserve Bank of India’s rate cuts and aggressive liquidity measures. In April, overseas investors poured a net $1.3 billion into Indian equities, reversing earlier outflows that had peaked at over $3 billion earlier in the month.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
