Stock Markets Close In Green Amid Uncertainty Post Operation Sindoor, Rupee Plunges 46 Paise

While the indices did manage to pare any losses and recover from the lows of early market hours, both Sensex and Nifty, failed to make a strong rally before closing slightly higher.

The Indian rupee took a big fall and depreciated 46 paise to settle at 84.81 (provisional) against the US dollar on Wednesday.

Source : ABPLIVE AI

The Indian markets ended the trading session on Wednesday in green. Uncertainty emerging from the Indian military's Operation Sindoor last night targeting terrorist camps in parts of Pakistan and Pakistan-Occupied Jammu and Kashmir (PoK) continued to weigh on the sentiment in market and restricted the indices from making any major gains.

While the indices did manage to pare any losses and recover from the lows of early market hours, both Sensex and Nifty, failed to make a strong rally before closing slightly higher.

The BSE Sensex settled the session more than 100 points higher close to the 80,750 mark, while the NSE Nifty50 ended trading above 24,400, climbing nearly 35 points.

On the 30-share Sensex, Tata Motors, Bajaj Finance, Eternal, Adani Ports, and Tata Steel stood among the gainers of the day. Meanwhile, the laggards included Asian Paint, Sun Pharma, ITC, Reliance, and HCL Tech.

In the broader markets, indices closed entirely in green. The Nifty Midcap Select dominated and settled 1.93 per cent higher. Sectorally, the Midsmall Financial Services and Financial Services Ex-Bank indices led the gains and ended up by 2.74 per cent and 2.12 per cent respectively. On the other hand, the FMCG index slumped 0.52 per cent in the day.

Rupee And Market Volatility

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, noted, "Even as the country is in the middle of a military action against terrorist network across the border, markets witnessed gyration during intra-day trade but eventually managed to shrug off the uncertainty to end slightly higher. 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."

The Indian rupee took a big fall and depreciated 46 paise to settle at 84.81 (provisional) against the US dollar on Wednesday.

Meanwhile, foreign institutional investors (FIIs) purchased Indian equities worth Rs 3,794.52 crore on Tuesday, according to exchange data. The global oil benchmark, Brent crude, climbed 0.64 per cent to touch $62.55 a barrel. Pankaj Singh, small case manager and Founder and Principle Researcher at SmartWealth.ai, explained, "Geopolitical tensions like the ongoing Indo-Pak standoff under 'Operation Sindoor' tend to cause immediate market volatility. While short-term caution is reasonable, history shows that Indian markets demonstrate strong resilience once clarity returns. Unless accompanied by broader economic or global shocks, Indo-Pak tensions have not had a lasting negative impact. Investors should focus on fundamentals, not fear."