Domestic stock market ended marginally up in a volatile trading session on Wednesday on caution after India launched “Operation Sindoor”, targeting terror sites in Pakistan and Pakistan-occupied Kashmir.
The BSE’s Sensex closed at 0.13 per cent, or 105.71 points to close at 80,746.78. The index swung over 900 points from low to high. The Nifty 50 rose 0.14 per cent, or 34.8 points, to settle at 24,414.4.
The Indian armed forces launched “Operation Sindoor” on Wednesday to hit terrorist infrastructure at nine sites in Pakistan and Pakistan-occupied Kashmir, to avenge the Pahalgam terror attack.
“Even as the country is in the middle of a military action against terrorists network across the border, markets witnessed gyration during intra-day trades but eventually managed to shrug off the uncertainty to end slightly higher,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
While the mood will be of caution due to Indo-Pak war tension, markets could witness choppy sessions with stock-specific activity over next few days, he said.
Technically, after a weak open, the market bounced back sharply from the day’s lowest point, over 200/ 500 points.
“We are of the view that the current market texture is non-directional; perhaps traders are waiting for either side breakout,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
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Analysts said that 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 crores in the cash market.
“FIIs are focused on the global macros like weak dollar, slower growth in 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,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
Foreign portfolio investors (FPIs) net bought Rs 3,794.52 crore of local shares, while domestic institutional investors (DIIs) sold Rs 1,397.68 crore of equities on Wednesday, according to the BSE’s provisional data.
On Tuesday, India and the United Kingdom ironed out major differences during the latest round of talks and announced the conclusion of the long-awaited free trade agreement.
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“Once the deal comes into effect, the UK tariffs on footwear, textiles, automobile components, electrical machinery, minerals, and base metals — currently in the 2-18 per cent range — will be eliminated,” said Devarsh Vakil, Head of Prime Research, HDFC Securities.
Among sectors, the capital market index was the top gainer, rallying over 3 per cent, whereas the defense index shed over 1 per cent on profit booking.
Nifty Midcap 100 gained 1.59 per cent and Nifty Smallcap 100 rose 1.38 per cent. India VIX, indicator of the market’s expectation of volatility over the near term, ended 0.34 per cent up at 19.06.
The NSE companies that gained on Wednesday were Tata Motors (5.18 per cent), Jio Financial Services (2.11 per cent), Bajaj Finance (2.04 per cent) and Shriram Finance (1.85 per cent).