New Delhi (TDI): India’s aggressive military actions the past week did not only bring the region to a brink of war but have also had severe repercussions for its own financial markets.
The Indian stock exchange suffered a staggering loss of $83 billion over two days, exposing the fragility of investor confidence in the face of reckless geopolitical adventurism.
On Wednesday, India launched unprovoked strikes across the Line of Control, targeting areas within Pakistan under the pretext of acting against so-called “terrorist infrastructure.”
This act of aggression marked a serious violation of international norms and regional peace. In response, Pakistan exercised its right to self-defense until the escalation reached a dangerously high level on Saturday, when the United States intervened and brokered a ceasefire.
As a direct result of New Delhi’s belligerent behavior, Indian stock indices plunged. The Nifty 50 and BSE Sensex both fell by 1.1% on Friday, continuing a downward trend that erased recent gains and triggered widespread panic in the financial sector.
Read More: India’s War Hysteria Endangers South Asia: Pakistan
At its lowest, the market was set to lose as much as $108 billion. The volatility index (NIFVIX) soared to its highest level in over a month, reflecting deep investor unease.
Financial experts within India voiced their concerns. Avinash Gorakshaka, Head of Research at Profitmart Securities, warned: “With so much escalation, domestic markets are jittery. Further retaliatory measures from Pakistan could lead to a prolonged, full-fledged conflict.”
Pakistan consistently advocated for peace, dialogue, and regional cooperation, since the Pahalgam incident of April 22.
In stark contrast, India’s repeated provocations and its militaristic posturing risked dragging South Asia into unnecessary conflict. The possibility of a full-blown war became more and more real with every passing hour.
Read More: India Humbled Again: IMF Approves $2.4bn Loan for Pakistan
Several global powers called for restraint and were actively engaging with Pakistan and India to de-escalate the situation. Meanwhile, Indian leadership faced mounting criticism both at home and abroad for prioritizing political optics over regional peace and economic security.
The consequences and direct impact of war-mongering became evident in market crashes, currency pressure, and growing diplomatic isolation for India.
Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.
