World
India
Indian stock markets opened with volatility on Wednesday, shortly after the Indian Army announced Operation Sindoor, a precision strike targeting terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). Both Sensex and Nifty50 swung between gains and losses as geopolitical tensions stirred investor caution.
At 10:21 AM, the Nifty50 was trading at 24,291.05, down 89 points or 0.36%, while the BSE Sensex stood at 80,387.58, falling by 253 points or 0.31%.
The market dip came in response to India’s airstrikes, which targeted terror camps reportedly used to plan attacks against the country. According to the Indian Army, these strikes were aimed at disrupting imminent threats. Market analysts, however, described the move as “non-escalatory.”
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told CNN, “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. The market is unlikely to be deeply affected since the possibility of such action was already priced in.”
Vijayakumar added that foreign institutional investors (FIIs) have shown sustained interest in Indian equities, investing around ₹43,940 crore in the past 14 trading sessions. He emphasized that FIIs are shifting focus toward large-cap stocks amid global cues such as a weak dollar and slower growth projections in the US and China.
On the BSE Sensex, several major firms posted losses. Stocks such as HCL Tech, Asian Paints, Nestle India, HUL, Titan, and Sun Pharma saw declines up to 1.5%. However, a few firms defied the trend. Tata Motors, in particular, gained over 4% after shareholders approved its plan to split into two separate listed entities one for passenger vehicles (PV) and another for commercial vehicles (CV).
Ajay Bagga, a banking and market expert, told CNN, “The geopolitical risk that was hanging over the Indian markets has got crystallised today with the Indian strikes on PoK and Pakistan-based terror camps. The market opened with a negative gap, similar to reactions during the Uri and Balakot operations.”
Bagga added that future market trends will depend on whether this operation remains limited or escalates further. “Geopolitical risk remains high. We could see more selling if the situation worsens,” he said.
Tuesday saw a minor setback in markets, with analysts pointing to the increasing tensions between India and Pakistan. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, “The rally of the past two weeks has been paused due to the rising geopolitical stress. Nifty could see a drop of 200–400 points, but a deeper correction is unlikely unless there’s military escalation.”
Meanwhile, investor focus is also shifting to global developments. The outcome of the US Federal Reserve’s policy meeting on May 7 is expected to influence sentiment. While no interest rate hike is expected, Jerome Powell’s views on inflation and tariff uncertainties could sway short-term market direction.
On Tuesday, foreign portfolio investors (FPIs) made net purchases of ₹3,795 crore, while domestic institutional investors (DIIs) sold equities worth ₹1,398 crore.
In the international market, US stocks fell for a second day on Tuesday amid unclear statements from US President Donald Trump and Treasury Secretary Scott Bessent regarding trade talks. Meanwhile, gold prices dipped on Wednesday as optimism around US-China trade negotiations reduced demand for safe-haven assets.
ALSO READ: India-UK Sign Historic FTA To Boost $50 Billion Bilateral Trade
