On Wednesday, May 7, 2025, the Indian stock market demonstrated resilience amidst geopolitical tensions, specifically Operation Sindoor, India's strike on terrorist facilities in Pakistan and Pakistan-occupied Kashmir. Despite initial dips, the Nifty 50 and BSE Sensex recovered, closing with gains.
Nifty 50 Trade Setup
For Thursday, May 8, 2025, immediate resistance for the Nifty 50 index is expected at 24,500, with a breakout above this level potentially leading to a move towards 24,600-24,650. On the downside, a break below 24,300 could trigger selling pressure. Kotak Securities' Head of Equity Research, Shrikant Chouhan, noted these levels.
Bank Nifty
The Bank Nifty is expected to consolidate between 53,500 and 56,000. Bajaj Broking has identified key support between 54,000 and 53,500.
India-Pakistan Conflict and Market Impact
Historically, the Indian stock market has shown resilience during periods of conflict with Pakistan. According to Anand Rathi, Indian markets have remained largely unaffected by such events, with corrections primarily driven by global economic factors. Since 1999, the Nifty 50 has experienced an average decline of only 5.27% during major cross-border incidents, subsequently delivering returns ranging from 7% to 19% over six-month periods. Operation Sindoor had a minimal impact on Indian stock markets, with the Nifty and Sensex recovering quickly due to a focus on capital flows and economic fundamentals.
Stocks to Buy or Sell on Thursday
Several brokerage firms have provided stock recommendations for Thursday, May 8, 2025:
Global and Domestic Factors
Geopolitical developments, corporate earnings, and macroeconomic data from the U.S. are expected to influence market dynamics. Investors are closely monitoring Q4 results of major companies, including L&T, Britannia, Titan, Pidilite, Biocon, Bharat Forge, Union Bank, and Canara Bank.
Overall Market Sentiment
Analysts suggest that the Indian market's reaction to recent events aligns with historical trends, where geopolitical tensions lead to temporary dips followed by recovery. The focus remains on economic indicators and capital flows, with expectations of de-escalation prevailing among investors.
