As tensions between India and Pakistan increase, the Sensex and Nifty 50 decline.

As tensions between India and Pakistan escalated after the government revealed that Indian armed forces had targeted air defense radars and systems at several places in Pakistan, frontline indices, the Sensex and the Nifty 50, closed Thursday, May 8, lower.

The Nifty 50 ended 141 points, or 0.58 percent, lower at 24,273.80, while the Sensex closed at 80,334.81, down 412 points, or 0.51%. As the BSE Midcap and Smallcap indices lost 1.90 and 1.05 percent, respectively, the broader indices did not fare as well.

The India VIX volatility index surged 10.21%, suggesting that market participants are more anxious. As the collective market capitalization of companies listed on the BSE fell to almost ₹418.50 lakh crore from over ₹423.50 lakh crore in the previous session, investors lost about ₹5 lakh crore in a single day.