Operation Sindoor Anniversary: This day that year - How Sensex, Nifty reacted to India's Tri-service military prowess

The Indian stock market witnessed high volatility on May 7, 2025 - the day when India launched 'Operation Sindoor' on the Pakistani soil to avenge the attack in Pahalgam on April 22, 2025, in which 26 civilians were killed. 

Sensex saw high volatility during the session, falling nearly a percent intra day to 79,937. On similar lines, the 50 stock Nifty slipped 0.65% intra day to 24,220 

At close, Sensex rose 105.71 points or 0.13 percent to 80,746.78, and Nifty was up 34.80 points or 0.14 percent at 24,414.40.

The operation lasted for four days before ceasefire was declared on May 10. The market was closed on May 10 for weekly holiday (Saturday). On May 9, Sensex closed at 80,334 and Nifty ended at 24,008. 

Sensex slipped 1187 points or 1.47% during the four day operation Sindoor from May 7 to May 10. On similar lines, Nifty fell 1.52% or 371 points during the India's befitting reply to the cowardly act from across the border.

The fall in the indices came after Pakistan also launched drone attacks on different Indian cities. This hit investor sentiment as stocks plunged on fears that the conflict may turn into a full blown war. 

Following the launch of Operation Sindoor, market volatility surged sharply, pushing the India VIX to 21.63 — among its highest levels in recent months. The volatility index rose 13.84% during the three trading days from 19 on May 6 to 21.63 on May 9. 

The spike reflected heightened investor nervousness amid rising geopolitical tensions. 

However, sentiment steadied after reports emerged of India’s strong counter-response and the successful prevention of attacks on key cities. As fears of further escalation eased, the VIX stabilised, indicating caution in the markets but no widespread panic selling.

Later on May 12 (Monday), the volatility index fell back below the 20 mark to 18.39, slipping gradually during the ensuing months.