Indian Markets Collapse Amid Geopolitical Tensions and Global Uncertainty

Geopolitical Tensions Trigger Sharp Decline in Indian Markets

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: April 25, 2025

Summary: The Indian financial markets had a sharp loss, with the Nifty50 falling below 24,000 and the BSE Sensex falling more than 600 points.

The Indian equity markets saw a sharp decline on Friday, as investors are cautious with increasing geopolitical tensions and tensions in the world economy. Significantly retreating from recent gains, the BSE Sensex fell more than 600 points, and the Nifty50 fell below the 24,000 mark.

The downturn follows a deadly terrorist attack in Kashmir that claimed 26 lives, leading to heightened tensions between India and Pakistan. Investors were alarmed when India replied by suspending the Indus Waters Treaty and taking other diplomatic measures.

Global factors contributed equally to the market's decline. Uncertainties surrounding U.S.-China trade negotiations and conflicting corporate earnings reports from major international firms added to investor nervousness.

Some of the stocks remained stable despite the fall of Indian markets. Concerns over asset quality caused a decline in Axis Bank shares, while Reliance Industries and Maruti Suzuki saw rises before their earnings reports.

Analysts suggest that the market may continue to experience volatility in the near term, influenced by geopolitical developments and global economic indicators. Investors are advised to exercise caution and closely monitor unfolding events.