Stock market today: Following the escalation in the India-Pakistan conflict, the Indian stock market witnessed heavy selling pressure during Friday’s trading session on May 9, with benchmark indices recording their worst intraday drop since early April.
The BSE Sensex tumbled 880 points, or 1.10%, marking its steepest intraday fall since April 7, to settle at 79,454. Meanwhile, the Nifty 50 crashed 265 points, or 1.1%, to close slightly above the 24,000 mark at 24,008. For the week, both indices lost over 1.30%, snapping their four-week winning streak.
The midcap index however, stood resilient. Although it started the session with deeper cut, it swiftly recovered in the following hours of trading.
The Nifty Midcap 100 index rebounded 1,130 points to settle with just a 0.01% drop at 53,223, while its peer, the Nifty Smallcap 100 index, recovered 320 points from the day’s low but concluded the session with a 0.61% drop at 16,085 points, still outperforming the benchmark indices.
In terms of individual stocks, 39 constituents of the Nifty 50 ended the session in the red, while the remaining 11—led by Tata Group stocks including Titan Company and Tata Motors—finished the session in the green despite weak market conditions.
According to stock market experts, this fall in the Indian stock market can be attributed to five major reasons: the Indian-Pakistan conflict rising beyond an expected limit, weak global cues, rise in the US dollar rates, value buying in the crude oil prices and no concrete outcome from India-US trade deal talks.
Why Indian stock market crashed today
Speaking on the reasons for the Indian stock market fall on Friday, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “It’s true that the Indian stock market is falling, but we can’t call it a crash as the Nifty 50 index is still above 24,000 levels. However, it’s for sure that the market has become highly volatile after India’s drone strikes in Pakistan. The India-Pakistan conflict has gone beyond the market estimates, and hence, investors are not in the mood to take any risk when the US Dollar Index has regained the crucial 100 levels. Crude oil prices have also surged, and major Asian indices like Shanghai and Hang Seng are under pressure.”
Stock market crash: Top 5 reasons
Asked about the top five reasons that are dragging Indian stock market today, Gorakshkar said, “There are the top 5 reasons that are dragging Dalal Street indices: Escalation in India-Pakistan conflict after drone strikes in Pakistan, weak global cues, rebound in US dollar rates, bottom fishing in crude oil, and not any concrete outcome from the India-US trade deal talks.”
1] India-Pakistan war buzz: “The escalation in the India-Pakistan conflict after India’s drone strikes in Pakistan has raised fears of an India-Pakistan war. Earlier, the market was expecting a surgical strike-like retaliation from the Indian government, but the tension seems more prolonged than expected earlier,” said Avinash Gorakshkar.
On how much correction in the Indian stock market can be expected in the backdrop of India-Pakistan war buzz, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “The escalating tensions between India and Pakistan in 2025, marked by events such as the Pahalgam terror attack and India’s Operation Sindoor, have introduced fresh volatility into the Indian stock market. However, historical trends suggest that Indian equities, particularly the Nifty 50, have demonstrated resilience during past geopolitical conflicts, with corrections typically limited to 5–10% and recoveries often swift.”
2] No concrete outcome from the India-US trade talks: “Despite soon coming breakthrough claims from both sides, there is no such concrete evidence of a fruitful outcome from the India-US trade deal talks. So, the tariff uncertainty is still persisting, and hence, investors are not in the mood to keep their money in risky assets like equity,” said Gorakshkar.
3] Value buying in crude oil price: “After the fall in the crude oil prices from around $75 per barrel to around $60 per barrel in the international market, some value buying is taking place in the black gold. This is also a reason for investors squaring off their positions in the Indian equity market,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.
4] Rise in US dollar rates: “After the 90-day pause in Trump’s tariffs, the US dollar index witnessed a sharp decline and came around 98 levels. However, the American currency has once again become bulls’ favourite and the US dollar index has regained the crucial 100 levels, which is also a major trigger for selling pressure on Dalal Street,” said Anshul Jain.
5] Weak global market cues: Avinash Gorakshkar of Profitmart Securities said that Asian markets are also mixed as Shanghai and Heng Seng indices are trading red since morning. This could also be a reason for Dalal Street investors squaring off their positions.
India-Pakistan news
The Indian armed forces successfully utilised the Made in India Akash missile system to thwart Pakistani attacks, ANI reported, citing Defence Officials.
“The Made in India Akash surface-to-air missile air defence system has been effectively used by the Indian armed forces in foiling Pakistani attacks towards Indian targets. Both the Indian Army and Air Force have the missile system all along the Pakistan border,” Defence Officials told ANI.
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