Sensex, Nifty Extend Losses; Defense Stocks Surge

Indian shares were sharply lower on Friday as investors reacted to the latest updates on the India-Pakistan conflict.

The Indian Army said that Pakistan attempted to target military installations in Jammu, Pathankot, and Udhampur using missiles and drones and these attacks were successfully neutralized.

Pakistan also reportedly made "numerous cease fire violations" along the Line of Control and the alleged "violations" were met with a "befitting reply."

In response, the Indian Navy carried out missile strikes on strategic Pakistani naval bases in Karachi, resulting in significant damage and widespread panic along the country's coastline.

This marks the first reported naval offensive by India against Pakistan since the 1971 war.

Meanwhile, U.S. Vice President JD Vance has said that the conflict between India and Pakistan is 'fundamentally none of our business'.

"We can't control these countries, though. Fundamentally, India has its gripes with Pakistan, and Pakistan has responded to India. What we can do is to urge these folks to de-escalate a little bit, but we are not going to get involved in a war that is fundamentally none of our business and has nothing to do with America's ability to control it," Vance said.

The benchmark S&P/BSE Sensex was down 700 points, or 0.9 percent, at 79,634 in early trade, while the broader NSE Nifty index fell 230 points, or 1 percent, to 24,044.

Among the prominent decliners, Bajaj FinServ, Nestle India, Hindustan Unilever, ICICI Bank, UltraTech Cement and Power Grid Corp tumbled 2-3 percent.

Defense stocks were rising, thanks to the sharp escalation in the India-Pakistan tensions.

Bharat Forge rose 2.3 percent, Bharat Dynamics soared 7.6 percent, Bharat Electronics surged 4.6 percent and Hindustan Aeronautics jumped more than 3 percent.

Tata Motors rallied 3.5 percent after the U.S. struck its first trade agreement with the U.K. in a breakthrough deal.

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