Mumbai: Indian stock markets closed slightly higher on Wednesday, showing resilience despite heightened geopolitical tensions following India’s military strikes on terror infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir (PoJK) in response to the recent terror attack in Pahalgam.
The BSE Sensex ended the day up by 105.71 points (0.13%) at 80,746.78, while the NSE Nifty 50 rose 34.80 points (0.14%) to close at 24,414.40. The markets experienced early volatility, with Nifty opening lower at 24,233 due to initial nervousness. However, the index quickly rebounded, hitting an intraday high of 24,449 before moving into a range-bound phase for the remainder of the session.
Analysts attribute the market’s resilience to three main factors: progress in the India-UK free trade agreement, continued foreign institutional investments, and the absence of immediate escalation in India-Pakistan tensions post-strikes.
Sector-wise, positive momentum was seen in Auto, Consumer Durables, Metals, Realty, and Energy, while Consumer Goods, Pharma, and Healthcare sectors showed weakness.
VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today, remarked, “Markets displayed remarkable composure despite the tension following India’s precision strikes under ‘Operation Sindoor’. This reflects a growing maturity among Indian investors.”
Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity, noted that global uncertainty also played a role, with traders cautious ahead of the U.S. Federal Reserve’s interest rate decision and ongoing concerns over the global economic outlook.
Experts also noted that the market had largely priced in India’s response to the Pahalgam attack, which left 26 dead on April 22. However, broader risks remain due to escalating global trade tensions, particularly the intensifying U.S.-China tariff war. Concerns are mounting about the impact on global supply chains and potential dumping of Chinese goods into countries like India.
Despite the global headwinds and regional geopolitical flare-up, Indian markets ended the day in the green, reflecting underlying investor confidence amid a complex global and domestic backdrop.
