Equity benchmark indices Sensex and Nifty faced heavy volatility trade after India launched missile strikes on terrorist hideouts in Pakistan and Pakistan-Occupied Kashmir.
The Sensex hit the day’s high of 80,844.63 and an intra-day low of 79,937.48. The NSE Nifty hit a high of 24,449.60 and a low of 24,220.
Both the benchmark indices depicted range-bound trading during the morning trade. The BSE benchmark gauge traded 87.81 points lower at 80,553.26, and the Nifty quoted 16.55 points down at 24,365.05.
Retaliating for the Pahalgam terror attack, Indian armed forces on early Wednesday carried out missile strikes on nine terror targets in Pakistan and Pakistan-Occupied Kashmir, including the Jaish-e-Mohammad stronghold of Bahawalpur and Lashkar-e-Taiba’s base in Muridke.
“What stands out in ‘Operation Sindoor’ from the market perspective is its focused and non-escalatory nature. We have to wait and watch how the enemy reacts to these precision strikes by India. The market is unlikely to be impacted by the retaliatory strike by India since that was known and discounted by the market,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
The main catalyst of the market resilience in India is the sustained FII buying of the last 14 trading days which has touched a cumulative figure of Rs 43,940 crore in the cash market, he said.
“FIIs are focused on the global macros like weak dollar, slower growth in the US and China in 2025, and India’s potential outperformance in growth. This can keep the market resilient. However, investors have to watch the developments in the border,” Vijayakumar added.