Mumbai: Indian benchmark indices ended modestly higher on Wednesday in a volatile trading session as India launched missile strikes on terror targets in Pakistan and Pakistan-Occupied Kashmir (PoK) in retaliation for the Pahalgam terror attack.
The BSE Sensex rose by 105.71 points or 0.13 per cent to close at 80,746.78, recovering from a low of 79,937.48. The NSE Nifty advanced 34.80 points or 0.14 per cent to settle at 24,414.40, after oscillating between 24,220 and 24,449.60.
Operation Sindoor Sends Ripples Through Market
Early Wednesday, Indian armed forces carried out coordinated missile strikes targeting nine terror camps, including the Jaish-e-Mohammad base in Bahawalpur and Lashkar-e-Taiba’s Muridke headquarters, under Operation Sindoor. The action follows the killing of 26 civilians in Jammu and Kashmir’s Pahalgam two weeks ago.
While the military retaliation triggered temporary unease, the markets displayed resilience. “Though geopolitical tensions created intra-day jitters, investors eventually looked past the immediate uncertainty,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
FIIs Show Confidence, Stock-Specific Movement Likely
Foreign Institutional Investors (FIIs) remained net buyers, pumping in Rs 3,794.52 crore on Tuesday, according to exchange data. Analysts suggest that while short-term volatility is likely, broader fundamentals remain intact.
“Indo-Pak tensions have historically had limited lasting market impact unless tied to global shocks. Investors should stay focused on fundamentals,” noted Pankaj Singh of SmartWealth.ai.
Sector Watch: Automobiles, Metals Gain; FMCG, Pharma Lag
Among the Sensex stocks, Tata Motors, Bajaj Finance, Adani Ports, Tata Steel, and Power Grid were top gainers. In contrast, Asian Paints, Sun Pharma, ITC, Reliance Industries, and HCL Tech ended in the red.
Global Cues Mixed, Oil Inches Up
Global cues were mixed, with Asian markets mostly positive except Japan, while European and US markets dipped. Brent crude oil rose 0.64 per cent to USD 62.55 a barrel.
Adding a silver lining, India and the UK signed a historic free trade agreement on Tuesday, expected to boost Indian exports and lower import tariffs on UK products like whisky and cars.
(With agency inputs)
