If the stock market was bullish in the morning, then why did it fall, what put pressure
The effect of the ever-increasing tension between India and Pakistan after the terrorist attack in Pahalgam was also seen on the Indian stock market. On Friday, Nifty once again slipped below 24,000, while Sensex also plunged by 1200 points. A bigger decline was seen in the broader market (mid and small cap).
At the market close on Friday, Nifty50 fell by 207.35 points (0.86 percent) and settled at 24039.35, while BSE Sensex fell by 588.90 points (0.74 percent) to settle at 79212.53. Mid cap and small cap indices fell by about 2.5 to 3 percent. The broader market appeared to be under more pressure. BSE Smallcap closed down 1,261.81 points (2.56 percent) at 48005.62, while BSE Midcap closed down 1,061.78 points (2.44 percent) at 42528.71. Nifty IT saw a rise.
Last night, the US markets closed with a good gain. In such a situation, it was believed that the Asian market and especially the Indian market could remain bullish today. But the pressure of the tension between India and Pakistan dominated the stock market. Sensex had lost about 1200 points at one point, but erased almost half of the decline by the closing.
Let us tell you that India has ended the Indus Water Treaty with Pakistan. Along with this, many other big steps have also been taken, such as ordering all Pakistani citizens to leave India within 48 hours. On the other hand, Pakistan has also suspended the Shimla Agreement.
What was the Shimla Agreement?
An agreement was signed between India and Pakistan on 3 July 1972 in Shimla, Himachal Pradesh. This agreement was signed between Indian Prime Minister Indira Gandhi and Pakistan President Zulfikar Ali Bhutto after the 1971 war, which led to the formation of Bangladesh. The objective of the agreement was to restore peace between the two countries and resolve disputes through mutual dialogue. It was also decided that the Kashmir issue would be resolved through bilateral talks and the ceasefire boundaries would be respected.
Investors are booking profits
Business Standard quoted Alphaniti Fintech co-founder and director U. R. Bhatt as saying that there is a panic in the stock market after the recent events in Pahalgam. He said that the market had recently risen, which was after the fall due to the fear of tariff hike by the US. Now investors are preferring to book profits and sit comfortably. They want the situation between India and Pakistan to become clear, only then they should take the next step.
All sectors in the stock market were in red
At the time of writing the news, all sectors in the stock market were in red. The banking index was under the most pressure. In the last session, Nifty 50 ended the April series with a sharp rise of 655 points. The May series is starting from Friday, in which a record open interest of 1,150 crore shares was recorded. The increase in open interest and the average rise of 4.8% indicate long buildup and short covering.
