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Markets Up Despite India-PAK Tensions: Why?
Hello,
Despite a volatile session yesterday marked by initial losses stemming from India-Pakistan tensions following Operation Sindoor, here is why Indian markets demonstrated resilience and ultimately closed in positive territory.
Separately, new analysis indicates that India is projected to save ₹1.8 lakh crore on its import bill due to the softening of global oil prices. Furthermore, the recently agreed Free Trade Agreement with the United Kingdom is expected to provide a substantial boost to specific sectors, with India eyeing $3 billion in jewellery exports to the UK. Adding to the positive sentiment, the Indian Private Equity and Venture Capital market showcased a strong rebound in 2024, reaching $43 billion, primarily driven by robust venture capital and growth investments.
As of 07/05/25
On a volatile Wednesday, May 7th, Indian benchmark indices managed to finish in positive territory.
This recovery occurred despite initial losses and ongoing tensions between India and Pakistan, largely thanks to easing global trade tensions, the signing of the free trade agreement with the UK, and sustained strong inflows from overseas investors.
The market's turnaround was notably supported by gains in the auto, realty, and metal sectors.
Textile stocks were significant gainers following the official signing of the India-UK trade pact.
Nifty 50 | 0.14% | 24,414.40 |
BSE Sensex | 0.13% | 80,746.78 |
Nifty Bank | 0.63% | 54,610.90 |
Nifty IT | 0.14% | 35,920.30 |
Nifty Vix | 0.34% | 19.06 |
10 yr Bond | 1.34% | 6.44 |
USD>INR | 0.57% | 84.77 |
Source: Moneycontrol
MRF +4.16%
MRF shares saw a 4 percent rise after its Q4 results revealed a 29 percent jump in year-on-year consolidated net profit, reaching Rs 512 crore.
The company also declared a final dividend of Rs 229 per share for FY25.
Asian Paints (3.97%)
Asian Paints shares declined by 3.50% in today’s session, ahead of its Q4 results, amid growing concerns over weakening urban consumption and intensifying competition.
India to save ₹1.8 lakh crore on import bill on softening global oil prices. (ET)
India eyes $3 billion jewellery exports to UK after FTA. (FE)
Scotch whisky to get cheaper in India as import duty slashed under UK FTA. (BS)
Competition Commission issues norms to assess predatory pricing practices. (BS)
Musk-owned Starlink gets approval to operate satellite services in India. (BS)
India PE-VC market rebounds 9% in 2024; VC, growth investment spur momentum. (ET)
EV startup Simple Energy plans ₹3,000 crore ($355Mn) IPO in FY27. (ISN)
There are no mainboard IPOs this week.
M&A / Investments
Nexus Select Trust acquires Ludhiana mall, hotel for ₹490 crore ($58.1Mn). (ET)
Motilal Oswal invests ₹200 crore ($23.7Mn) into Lahori for 7.14%. (EN)
Nazara’s Absolute Sports acquires TJRWrestling.net and ITRWrestling.com. (EN)
Novopor acquires Pressure Chemical to boost specialty chemical scale. (BS)
Debt
NTPC to raise ₹4,000 crore ($474Mn) via NCDs through private placement on 9 May. (BS)
VC
Category | Company | Amount |
|---|---|---|
Transport | ₹336 crore ($40Mn) | |
Interior Design | ₹294 crore ($35Mn) | |
IT Services | ₹125 crore ($14.8Mn) | |
Kitchen Robotics | ₹67 crore ($8Mn) | |
Spacetech | ₹47 crore ($5.6Mn) | |
Logistics | ₹6.5 crore ($771k) |
