Indian markets remain resilient despite Delhi blast; Nifty India Defence index rises 2%

The Indian stock markets rebounded from the day’s low, and has been slowly advancing, showcasing the investors’ resilience after yesterday’s grievous incident at New Delhi. On November 10, at least nine people were killed and many others were injured in a blast through a moving car at a traffic signal outside Gate No. 1 of the Red Fort Metro Station in Delhi. 

The Nifty50 stood at 25,679.10, advancing by 111 points or 0.41%, while the Sensex rose by 295.15 points or 0.35% to 83,830.50.

Meanwhile, the Nifty India Defence thematic index saw a rise of 2.23% in today’s trade, trading at 8253.45. Leading the index was MTAR Technologies, soaring by 6.78%, followed by Bharat Forge, which was up by 5%, and Data Patterns, which added 4.24% to its previous close. Bharat Electronics, which is in the Nifty50 index, was the second highest on the benchmark index, up by 2.33%.

This is not the first time that the defence stocks have risen—the shares soared around 50% right after Operation Sindoor, a retaliation against the Pahalgam terror attack that occurred in April. The past two surgical strikes since 2016—Uri and Balakot—had a limited impact on the domestic markets. Except for the Parliament attack in 2001, all other incidents studied have led to positive market returns over the medium to long term.

If we go further back in time, investors have shown far greater strength. The Sensex jumped by a staggering 37% between May 3 and July 26 during the 1999 Kargil War. Even during the 26/11 Mumbai attacks, markets rebounded after two days, as the city was combating terror.

Meanwhile, Prime Minister Narendra Modi, who landed in Bhutan earlier today, expressed condolences to those who lost their loved ones in the horrific blast in Delhi on Monday evening.

"The horrific blast in Delhi last evening has deeply pained everyone. India stands with those who have suffered. I assure everyone that the agencies will get to the bottom of the entire conspiracy. All those involved will be brought to justice,” the Prime Minister said in Thimphu, Bhutan. He said he reviewed the situation with Union Home Minister Amit Shah and other officials.