Stock Markets, Rupee To Open Lower As Pakistan-Origin Drones & Missiles Target Military Bases
India’s financial markets are bracing for a rough start on Friday after a dramatic escalation in cross-border tensions with Pakistan. In the early hours of the day, Indian defence authorities confirmed that multiple military stations across Jammu and Kashmir were targeted by drones and missiles traced back to Pakistan. The development has spooked investors and is expected to weigh heavily on the rupee and benchmark indices.
Nifty Set For A Drop, Rupee Under Pressure
As of 6:46 am. IST, Gift Nifty futures were trading at 23,987 — pointing to a 1.2% decline from Thursday’s close of 24,273.8 for the Nifty 50 index, reported Retuers. Meanwhile, the non-deliverable forward (NDF) market indicated further depreciation of the Indian rupee against the US dollar. The sentiment is being driven by heightened geopolitical risks following consecutive days of hostilities between the two nuclear-armed nations.
Currency traders and equity investors are expected to adopt a cautious stance, with safe-haven demand likely pushing the dollar higher as India’s border situation unfolds. It is a known fact that the market does not like uncertainty, and geopolitical escalations doesn't always help the situation.
Pakistani Missiles Intercepted, Situation Monitored Closely
According to the Indian Defence Ministry, missile and drone attacks originating from Pakistan struck military installations in Jammu, Pathankot, and Udhampur. Key targets included areas in and around Satwari, Samba, RS Pura, and Arnia. Fortunately, Indian Air Defence Units successfully intercepted the incoming missiles, preventing any casualties or damage.
"The threats were swiftly neutralised using kinetic and non-kinetic capabilities in line with established Standard Operating Procedures (SOPs). No casualties or material losses were reported. India remains fully prepared to defend its sovereignty and ensure the safety of its people," said a Defence Ministry spokesperson.
The attacks came late Thursday night, with blasts reported in Jammu. This marks the second consecutive day of cross-border hostilities, adding a fresh layer of volatility to an already fragile regional equation.
Top Leadership On Alert
In response to the developments, Prime Minister Narendra Modi has been briefed on the Indian Armed Forces' countermeasures. National Security Advisor Ajit Doval is keeping a close watch on the evolving situation. Defence Minister Rajnath Singh has been in continuous consultation with the Chiefs of Army, Air Force, and Navy. He also convened an urgent meeting with all three service chiefs to review preparedness and operational responses.
While no injuries or structural damages have been reported so far, the geopolitical flashpoint has injected uncertainty into market sentiments. Investors will be watching the situation closely, especially for any signs of diplomatic outreach or further military escalation.
With financial markets already treading carefully amid global headwinds, this regional conflict adds another layer of risk — one that will likely shape trading dynamics in the near term.
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