Indian equity markets rebounded on Wednesday morning after initial losses, coinciding with the Indian Army’s execution of ‘Operation Sindoor’, a strategic military strike targeting nine terror hubs in Pakistan and Pakistan-occupied Kashmir (PoK), in response to the recent Pahalgam terror attack that killed 26 civilians.
Markets Recover After Early Dip
By 9:34 AM, the BSE Sensex rose 160 points to reach 80,800, while the NSE Nifty gained 56 points to trade at 24,435.35, recovering from early declines. Market sentiment appeared stable despite heightened geopolitical tensions following the strikes.
Sectoral Performance Mixed
On the NSE, eight out of 12 sectoral indices advanced, while seven declined.
- Nifty PSU Bank emerged as the top gainer.
- Nifty Media recorded the sharpest fall among sectors.
Top Gainers And Losers
Among the major Nifty gainers were:
- Tata Motors
- Shriram Finance
- Apollo Hospitals
- Bajaj Finance
- Hindalco
Key losers included:
- Asian Paints
- Titan Company
- TCS
- Larsen & Toubro (L&T)
- Tech Mahindra
Analysts Highlight Market Resilience
Analysts attributed the market’s calm response to the measured and non-escalatory nature of Operation Sindoor.
“The market was not surprised by the strike. It had already priced in such an action,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “Investors are now watching how Pakistan responds to these precision strikes.”
FIIs Continue Strong Buying Spree
Foreign Institutional Investors (FIIs) have played a significant role in maintaining market resilience.
Over the past 14 consecutive trading sessions, FIIs have pumped in nearly ₹43,940 crore into India’s cash market.
Analysts note that FIIs are focusing on favourable global macros, such as a weaker dollar, slowing growth in the US and China, and India’s relative economic outperformance.
Shift From Midcaps To Largecaps
Experts also observe a clear shift in investor preference toward large-cap stocks, as valuations in mid and small-cap segments appear stretched. FIIs are primarily buying into large-cap companies, a trend that may continue.
Geopolitical Tensions May Stir Volatility
Despite the market’s current steadiness, experts warn that ongoing geopolitical tensions could introduce short-term volatility.
Meanwhile, US stock markets declined on Tuesday, as the Federal Reserve began its two-day policy meeting. Investors are closely watching how President Trump’s tariff policies might influence the Fed’s stance on interest rates and the broader US economic outlook.
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