Why markets fell today: LoC ceasefire violation drags Sensex nearly 1200pts

Why Sensex, Nifty are down today: The NSE Nifty50, on the other hand, declined 399 points to break the 24,000-mark and hit a low of 23,848

Stock Market Today, Why markets are falling: Stock markets in India today, April 25, came under a sudden and sharp sell-off as escalating diplomatic tensions between India and Pakistan and ceasefire violations across the Line of Control (LoC) by Pakistan, following the Pahalgam terror attack, worried Dalal Street investors.

 

The BSE Sensex index today fell 1,195 points in the intraday trade to hit a low of 78,606 level. The NSE Nifty50, on the other hand, declined 399 points to break the 24,000-mark and hit a low of 23,848.  As of 3:30 PM, the Sensex closed 0.71 per cent or 570.8 points lower at 79,227, while the Nifty ended 0.86 per cent or 207.3 points lower at 24,039. 

 

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In the broader markets, the Nifty MidCap index and the Nifty SmallCap index crashed 3 per cent and 3.5 per cent, respectively, tilting the market breadth in the favour of bears.

 

Of the 2,816 stocks traded on the National Stock Exchange (NSE) today, only 279 stocks were in green at the time of writing this report, while 2,478 stocks were in the red. Fifty nine stocks remained unchanged. 

 

India's fear gauge, India VIX, meanwhile soared jumped 8.2 per cent in the intraday trade to a high of 17.58 level, suggesting the growing nervousness among investors around the breakdown in Indo-Pak relations.

 

India-Pak at war? Top updates in Pahalgam attack and key reasons why Sensex, Nifty are falling today:

 

Ceasefire violation across LoC:

Hours after suspending the Simla Agreement of 1971, which recognised the Line of Control, Pakistan Army troops violated the ceasefire at the LoC and opened fire at multiple locations on Thursday night. The Indian Army, on its part, has responded "effectively".

 

According to multiple reports, there were casualties reported on the Indian side.

 

The ceasefire violation along the LoC comes days after the Pahalgam terror attack, which left 26 dead, mostly tourists, at the Baisaran valley near Pahalgam, Jammu and Kashmir.

 

Meanwhile, on April 1, too, the Pakistani Army had violated the ceasefire along the Line of Control (LoC) in Poonch district of J&K. 

     

Indian Army chief reaches Srinagar:

According to an ANI report, Army chief General Upendra Dwivedi is in Srinagar, J&K. He is being briefed by the 15 Corps Commander on the security situation and actions being taken by the formations against terrorists inside their own territory and Pakistan Army attempts to violate the ceasefire along the LoC.

 

Pakistan warns against India's "act of war":

Pakistan Defence Minister, Khawaja Asif, told reporters on Thursday that if there was an "all-out attack by India", then obviously "there will be an all-out war". The world, he added, should be "worried" about the rising tensions between two nuclear-armed neighbours.

 

Separately, in a statement to the media, Pakistan government said India's attempt to suspend the Indus Waters Treaty and divert the water meant for Pakistan, would be considered as "an Act of War". The IWT, as per India, stands suspended with immediate effect.

PM Modi to go "to the end of the Earth":

Addressing a public gathering in Bihar on Thursday, Prime Minister Narendra Modi vowed to "identify, track, and punish every terrorist and their backers" involved in the Pahalgam terror attack. He warned that those responsible for the attack would face retribution "beyond their imagination".

 

UN appeals India-Pakistan to avoid war:

While issuing a statement on the Pahalgam terror attack, Stéphane Dujarric, UN Secretary-General spokesperson, appealed to governments of Pakistan and India to "exercise maximum restraint". 

 

"The UN Secretary General is following the situation very closely and with very great concern. We were very clear in our condemnation of the terror attack that occurred in Jammu and Kashmir, on April 22, which killed a large number of civilians. But we very much appeal to both the governments of Pakistan and the government of India, to exercise maximum restraint and to ensure that the situation and the developments we've seen do not deteriorate any further," Dujarric said.

 

Any issues between Pakistan and India, he added, can be and should be resolved peacefully, through meaningful, mutual engagement.

 

India, Pak downgrade diplomatic relations:

India, on April 23, revoked all visas issued under SVES to Pakistani nationals from April 27 and advised Indian nationals residing in Pakistan to leave the neighbouring country.

 

India also asked all Pakistani nationals, currently in India, to leave the country before the expiry of visas. The defence advisors at Pakistan High Commission in India have been designated as persona non-grata.

 

Pakistan, on its part, announced similar actions against India on April 24, 2025.

 

Stock Market Updates Today:

Apart from the simmering tensions at the Indo-Pak border, profit booking in index heavyweights, including Axis Bank, Adani Ports, Bajaj Finserv, SBI, Bajaj Finance, Eternal (Zomato), Tata Motors, M&M, HDFC Bank, Bharti Airtel, and L&T dragged the benchmarks Nifty and Sensex lower today.  CATCH STOCK MARKET LATEST UPDATES TODAY HERE

 

All the sectoral indices on the NSE were trading with steep losses, led by the Nifty PSU Bank index (down 3 per cent), the Nifty Realty index (2.7 per cent), the Nifty Pharma index (2.5 per cent), the Nifty Metal index (2.3 per cent), and the Nifty Auto, and Bank indices (up to 2 per cent).

 

Sensex, Nifty: Key levels to watch today

According to Shrikant Chouhan, Head Equity Research, Kotak Securities, if the Nifty drops below 24,200 and the Sensex below 79,600, the market may decline to 24,000/79,000.

 

Further, as per Anand James, Chief Market Strategist, Geojit Investments Ltd, a break below 24,050 in the Nifty index could push the index down to 23,670.