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Domestic equity benchmarks ended sharply lower on Friday, May 9, tracking mounting geopolitical tensions between India and Pakistan. The BSE Sensex tanked 880 points, or 0.99 per cent, to settle at 79,454, while the NSE Nifty50 plunged 266 points to close at 24,008, slipping for the second consecutive session.

The Bank Nifty index also took a hit, falling over 1.1 per cent to end near 53,600 levels. Selling pressure was intense across large-caps, with ICICI Bank, Power Grid, Ultratech Cement, and Shriram Finance among the top laggards.

In contrast to the broader market weakness, defence stocks outperformed, supported by expectations of a policy push from the government. Paras Defence surged over 5.6 per cent, making it the top gainer in the segment. Shares of Hindustan Aeronautics (HAL), Bharat Forge, and Bharat Dynamics also clocked strong intraday gains, rising between 2 to 4 per cent.

The rally came on reports that the Centre may hold talks with Indian defence manufacturers to bolster domestic capability amid escalating regional tensions.

The sharp correction came amid fresh military confrontations across the border. On Thursday night, India successfully neutralised Pakistani drone and missile attacks targeting key military zones in Jammu and Pathankot.

FIIs, who had been net buyers for 16 straight sessions with over Rs 50,000 crore in inflows since mid-April, are now expected to turn cautious. Analysts suggest the current selloff is part of risk-off profit booking, triggered by increased geo-political uncertainty.

Market experts advise staying on the sidelines and avoiding aggressive leveraged positions until clarity emerges on the security front. Key support for Nifty is seen near 23,850, while 24,300 will act as a resistance. For Bank Nifty, immediate support is placed at 53,000.

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