Despite heightened geopolitical tensions following ‘Operation Sindoor’, Indian stock markets demonstrated notable resilience, closing on a positive note on Wednesday. The BSE Sensex recovered from early losses and climbed 105 points, or 0.13%, to settle at 80,746. Meanwhile, the NSE Nifty rose 0.14%, ending the day at 24,414, successfully reclaiming the 24,400 level, which is seen as a crucial resistance point.
The trading session began on a weaker footing amid regional uncertainties, but investor confidence rebounded as the day progressed. This recovery was fueled by several encouraging factors, including progress on the free trade agreement (FTA) between India and the United Kingdom, easing global trade tensions, and robust foreign institutional investments. These developments helped counterbalance the anxiety triggered by India-Pakistan tensions.
According to Sundar Kewat of Ashika Institutional Equity, significant open interest in Nifty call options is observed at the 24,500 and 24,400 strike levels, while put option interest is concentrated around 24,300 and 24,400, signaling a balanced market sentiment with a Put-Call Ratio of 0.98.
Key sectors such as automobile, real estate, and metals played a vital role in the intraday recovery. Tata Motors led the rally with a 5.2% gain, followed by Bajaj Finance, Adani Ports, Eicher Motors, and Titan with strong performances. On the other hand, some heavyweight stocks dragged the index slightly, including Asian Paints, Sun Pharma, ITC, Nestle India, and Reliance Industries.
Broader market indices also reflected the recovery, with the Nifty Midcap 100 and Nifty Smallcap indices each rising approximately 1.5%. While most sectors ended the day in the green, FMCG, healthcare, and pharma lagged behind. Notably, the India VIX—indicative of market volatility—rose 3.58% to 19, highlighting persistent uncertainty among investors.
