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Mint
4 days ago
- Business
- Mint
India-Pakistan conflict: F-16 fighter jet maker Lockheed Martin share price gives zero return in one month
India-Pakistan conflict: India-Pakistan conflict: Shares of Lockheed Martin, the manufacturer of the F-16 fighter jets prized by Pakistan, have remained lacklustre over the past month, following India's Operation Sindoor. During the four-day military conflict with India, which took place in May, Pakistan deployed fighter jets like F-16 and J-10, drones and missiles, but its attempts were successfully thwarted by India's air defence and battle-proven systems. Analysts believe this could prove a setback for the American defence company as it could impact its order book. Against this backdrop, Lockheed Martin, the US defence giant, has remained largely unchanged during this period. The stock edged up just 0.97% in May. 'Even though the US gave F-16 fighter jets to Pakistan for other than war use, there are reports that Pakistan used Lockheed Martin Corp's F-16 and China's J-10 fighter jets during Operation Sindoor last month. However, neither could breach India's air defence system, which would be a massive setback for China and the US,' explained Avinash Gorakshkar, Head of Research at Profitmart Securities. The market is expecting some hit on the order book of these defence companies in the upcoming quarters, said Goranshakr, explaining the weak returns in shares of Lockheed Martin.
Mint
23-05-2025
- Business
- Mint
Sensex jumps over 900 points, Nifty 50 reclaims 24,900; why is the Indian stock market rising? Can the rally sustain?
The Indian stock market has been on a volatile path recently, seeking direction amid heightened uncertainty over the US economy's trajectory, a fluctuating dollar, and mixed March quarter earnings. A day after crashing over 600 points, the domestic equity benchmark, Sensex, jumped over 900 points in intraday trade on Friday, May 23. The NSE counterpart also witnessed smart gains of over 1 per cent to reclaim the 24,900 level. The broader segment of the market also witnessed buying as the BSE Midcap and Smallcap indices rose about half a per cent during the session. There are no fresh positive cues for the Indian stock market at this juncture. At first glance, it appears that the domestic market is following the trend of "sell-on-rise and buy-on-dips". The domestic equity market has been swinging between gains and losses. This lack of clear direction reflects the underlying uncertainty surrounding key global developments, including the progress of US-India trade negotiations, concerns about the US fiscal position, and fluctuations in currency markets. The intermittent rise in the market can be attributed to short covering, as investors continue to see value due to prospects of healthy economic growth, an earnings revival, interest rate cuts, and a normal monsoon. "At present, market momentum is largely driven by liquidity rather than fundamentals. Greater clarity is expected to emerge after the first and second quarters of the current financial year. By September, we may see a more defined trend as macroeconomic indicators and corporate earnings provide direction," said Avinash Gorakshakar, the head of research at Profitmart Securities. Another factor that could be behind the market's gain is the weakness in the US dollar. The dollar index has declined by over 1 per cent this week, looking set to suffer its worst weekly loss since April 7. A weaker dollar can encourage greater foreign capital inflows to emerging markets like India. Despite the near-term volatility, the medium to long-term outlook of the Indian stock market remains healthy, reflecting India's macroeconomic stability amid global uncertainty and the strong influx of retail investors. This bright outlook encourages investors to accumulate quality stocks during market corrections. According to global financial giant Morgan Stanley, the correction in the Indian stock market presents a compelling opportunity to invest in the country's long-term growth story. In its latest outlook, Morgan Stanley has set a base-case Sensex target of 89,000 by June 2026, assigning a 50 per cent probability to this scenario. On the other hand, in the bull case, Morgan Stanley sees the Sensex reaching 1,00,000 by June 2026. However, Morgan Stanley sees a 20 per cent probability of a bear case in which the Sensex may drop to 70,000 by June 2026. 'Despite the near-term uncertainty, there is considerable value in the current market. Long-term investors would do well to accumulate quality stocks on dips, as any eventual recovery could be swift and decisive,' Gorakshakar noted. At this juncture, experts say a significant rally appears unlikely. A consolidation may continue as the market digests global developments, macro prints and Q4 earnings. "The market is expected to consolidate in the coming months, reacting to developments such as the progress of the monsoon season, quarterly earnings, and broader economic indicators," said Gorakshakar. The key risk for the market could be a change in stance by foreign institutional investors (FIIs). VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed out that sustained FII buying, which played an important role in this rally, appears to have run out of steam. "The big FII selling on 20th and 22nd of this month indicates that the FIIs may again turn sellers if the global environment turns unfavourable," said Vijayakumar. FIIs are tracking the dollar index and responding to currency volatility. If earnings revive notably, they may engage in aggressive buying. "While Q4 earnings were a mixed bag — neither particularly weak nor inspiring — investors are now looking for green shoots in the April-June quarter results," said Gorakshakar. Furthermore, the recent downgrade of US creditworthiness could create fresh opportunities for foreign capital inflows into emerging markets, including India, making the current phase an attractive entry point for investors. Amid prevailing global headwinds, the market's trajectory will depend on economic growth, inflation trends, and monetary policy decisions. "The silver lining from the market perspective is India's strong macros, particularly the resilient growth and declining inflation and interest rates," Vijayakumar noted. "Even when the market turns weak, domestic demand-driven segments like financials, telecom, aviation, etc., are resilient, and this is reflected in the strength in the stock prices of the big boys in these segments like ICICI Bank, Bharti Airtel and IndiGo. This message from the market is important," said Vijayakumar. Read all market-related news here Read more stories by Nishant Kumar
Express Tribune
10-05-2025
- Business
- Express Tribune
Indian markets lose $83 billion amid Pakistan tensions: Reuters
Listen to article Indian stock markets lost an estimated $83 billion in market capitalisation this week as escalating military conflict with Pakistan triggered investor concerns and rattled financial markets. The sell-off deepened after Pakistan launched a retaliatory military operation, Operation Bunyan-un-Marsoos, targeting strategic Indian installations in response to missile strikes by New Delhi earlier in the week. The Nifty 50 index fell 1.1% on Friday, closing just above the key 24,000-point psychological level. The BSE Sensex also declined 1.1%, finishing below the 80,000 mark it held a day earlier. The two benchmark indexes have now posted a weekly loss of approximately 1.3%, ending a three-week rally — their longest winning streak of 2025. At one point during Friday's trading session, total market losses approached $108 billion before partial recovery late in the day. 'With so much escalation, domestic markets are jittery because further retaliatory measures from Pakistan could lead to a prolonged, full-fledged conflict,' said Avinash Gorakshaka, head of research at Profitmart Securities. Analysts noted that market fundamentals had taken a back seat, with sentiment now largely driven by geopolitical updates. India's volatility index, known locally as the 'fear gauge', rose for the eighth straight session, reaching a high not seen in over a month. Twelve of the 13 major sectoral indexes ended the week in the red. Small-cap and mid-cap stocks fared worse than blue chips, with losses of 1.9% and 0.8% respectively. The Indian rupee also faced pressure, prompting the central bank to step in to stabilise the currency in currency markets. The one notable bright spot was in the auto sector. Shares of Tata Motors surged 8.7% on expectations that a potential UK-US trade deal could bolster sales for its British subsidiary, Jaguar Land Rover (JLR). The company was the top gainer among the Nifty 50 constituents this week. Despite ongoing tensions, analysts say optimism over a possible US-India trade deal and India's resilient economic fundamentals could help limit long-term market damage if diplomatic efforts succeed in easing hostilities. Simmering tensions Tensions between India and Pakistan escalated sharply following the April 22 attack in Pahalgam, located in Indian Illegally Occupied Jammu and Kashmir (IIOJK), which left 26 people dead. India blamed Pakistan-based elements for the attack without presenting evidence. Islamabad categorically rejected the accusations. In response, India closed the Wagah land border, revoked Pakistani visas, and announced the suspension of the Indus Waters Treaty on April 23. Pakistan labelled any disruption to the treaty as an 'act of war' and subsequently sealed the Wagah crossing on its side. The situation further deteriorated on May 6 and 7, with explosions reported in several Pakistani cities including Muzaffarabad, Kotli, Muridke, and Bahawalpur. Pakistan's military spokesperson, Lieutenant General Ahmed Sharif Chaudhry, confirmed that Indian airstrikes had targeted multiple locations. Pakistan responded with air and ground operations under a new military campaign named Operation Bunyan-un-Marsoos. Within the first hour of retaliation, Pakistan claimed to have downed five Indian fighter jets, including four Rafale aircraft. Lt Gen Chaudhry stated that Pakistan had the capability to down more but exercised restraint. Indian media provided limited coverage, with one report by The Hindu later retracted. International observers, including analysts on CNN, noted the downing of Rafale jets has challenged India's narrative of regional air superiority. A senior French intelligence official also confirmed the loss of one Rafale aircraft to CNN—the first combat loss for the jet. In addition, Pakistan's armed forces reported intercepting and neutralising 77 Israeli-made Harop drones allegedly launched by India. According to the Inter-Services Public Relations (ISPR), the drones were brought down using a mix of electronic warfare and conventional air defence systems. ISPR described the drone activity as a 'desperate and panicked response' to Pakistan's defence strikes. Security sources confirmed that Operation Bunyan-un-Marsoos is targeting bases identified as launch points for attacks on civilians and mosques. Pakistan also launched its Al-Fatah missile as part of the operation, in honour of children killed during recent Indian attacks.
Business Recorder
09-05-2025
- Business
- Business Recorder
Border conflict worry erases $83 billion from Indian equities in two days
Indian shares fell for a second straight session on Friday, losing about $83 billion in market value, as intensified military action between India and its neighbouring Pakistan rattled investors. The Nifty 50 fell 1.1% on Friday but closed above the psychologically key 24,000-point mark, while the BSE Sensex also lost 1.1% but ended below the 80,000 level it held the previous day. At its lowest, the market was set to lose $108 billion. The indexes fell about 0.5% on Thursday and have lost about 1.3% this week, snapping a three-week winning run, their longest this year. 'With so much escalation, domestic markets are jittery because further retaliatory measures from Pakistan could lead to a prolonged, full-fledged conflict,' said Avinash Gorakshaka, head of research at Profitmart Securities. 'Fundamentals will take a back seat while sentiment influenced by updates from the conflict could derail market momentum at least for a week if the fighting continues.' The volatility index, nicknamed the 'fear gauge', rose for an eighth straight session to hit a more-than-one-month high. Indian shares set for muted start amid India-Pakistan tensions Other asset classes also suffered, with the central bank forced to step in to stem the rupee's slide. The stock market hit was broad. Twelve of the 13 major sectors declined this week, while the small-caps and mid-caps lost 1.9% and 0.8%, respectively. The one bright spot was auto stocks, lifted by Tata Motors' 8.7% jump on hopes that the UK-US trade deal would boost the fortunes of its British unit JLR. It was the top among the 11 Nifty 50 members that gained this week. Analysts said hopes of a U.S.-India trade deal and the country's economic resilience would keep traders interested in the market.
