Stock market today: Indian equity benchmark indices, Nifty50 and BSE Sensex , swung between red and green in early trading hours on Wednesday after India carried out Operation Sindoor to target Pakistan's terrorist facilities. Nifty50 ended the day at 24,414.40, up 35 points or 0.14%. BSE Sensex closed at 80,746.78, up 106 points or 0.13%.
In the early hours of Wednesday, India announced conducting Operation Sindoor, targeting terrorist facilities in Pakistan and Pakistan-occupied Jammu and Kashmir. The Indian Army confirmed striking terror infrastructure that had been used to plan and direct attacks against India.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, "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 this 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. 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 43940 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. The big shift in market preference in favour of largecaps away from overvalued segments of mid and smallcaps is significant. FIIs, as always, are mainly buying largecaps. This trend can continue."
Ajay Bagga, a Banking and Market Expert, told ANI, "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."
Also Check | Operation Sindoor Live Updates
The expert indicated that subsequent market developments would be influenced by the unfolding circumstances in the days ahead.
"The future impact on the market will depend on whether this strike remains contained to today or if it expands. Geopolitical risk remains elevated and we could see some more selling in the Indian markets," Bagga said.
The equity markets weakened on Tuesday as heightened tensions between India and Pakistan made investors cautious.
"The geopolitical tensions between India and Pakistan have put a halt to the strong market rally seen in the past 15-16 days," said Shrikant Chouhan, Head - Equity Research, Kotak Securities.
According to Chouhan, market volatility might cause the Nifty to decline by 200-400 points, though a more substantial decrease is improbable barring severe events such as military conflict.
Market participants will monitor the US Federal Reserve's rate-setting meeting outcome on May 7. Despite expectations of unchanged interest rates, Federal Reserve chairperson Jerome Powell's views on inflation and growth amidst tariff uncertainties could influence immediate market direction.
Foreign portfolio investors (FPIs) recorded net purchases of ₹3,795 crore on Tuesday, whilst domestic institutional investors (DIIs) offloaded equities worth ₹1,398 crore.
US stocks declined for a second consecutive session on Tuesday following unclear statements from US President Donald Trump and Treasury Secretary Scott Bessent regarding trade agreement timelines.
Gold prices decreased on Wednesday as positive sentiment regarding potential US-China trade discussions reduced safe-haven asset demand, whilst investors awaited the Federal Reserve's policy meeting later in the day.
In the early hours of Wednesday, India announced conducting Operation Sindoor, targeting terrorist facilities in Pakistan and Pakistan-occupied Jammu and Kashmir. The Indian Army confirmed striking terror infrastructure that had been used to plan and direct attacks against India.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, "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 this 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. 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 43940 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. The big shift in market preference in favour of largecaps away from overvalued segments of mid and smallcaps is significant. FIIs, as always, are mainly buying largecaps. This trend can continue."
Ajay Bagga, a Banking and Market Expert, told ANI, "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."
Also Check | Operation Sindoor Live Updates
The expert indicated that subsequent market developments would be influenced by the unfolding circumstances in the days ahead.
"The future impact on the market will depend on whether this strike remains contained to today or if it expands. Geopolitical risk remains elevated and we could see some more selling in the Indian markets," Bagga said.
The equity markets weakened on Tuesday as heightened tensions between India and Pakistan made investors cautious.
"The geopolitical tensions between India and Pakistan have put a halt to the strong market rally seen in the past 15-16 days," said Shrikant Chouhan, Head - Equity Research, Kotak Securities.
According to Chouhan, market volatility might cause the Nifty to decline by 200-400 points, though a more substantial decrease is improbable barring severe events such as military conflict.
Market participants will monitor the US Federal Reserve's rate-setting meeting outcome on May 7. Despite expectations of unchanged interest rates, Federal Reserve chairperson Jerome Powell's views on inflation and growth amidst tariff uncertainties could influence immediate market direction.
Foreign portfolio investors (FPIs) recorded net purchases of ₹3,795 crore on Tuesday, whilst domestic institutional investors (DIIs) offloaded equities worth ₹1,398 crore.
US stocks declined for a second consecutive session on Tuesday following unclear statements from US President Donald Trump and Treasury Secretary Scott Bessent regarding trade agreement timelines.
Gold prices decreased on Wednesday as positive sentiment regarding potential US-China trade discussions reduced safe-haven asset demand, whilst investors awaited the Federal Reserve's policy meeting later in the day.
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