The Indian stock markets began Thursday on a weak note, as geopolitical tensions along the India-Pakistan border spooked investors, triggering a sell-off in the early session. The heightened conflict weighed on investor sentiment, leading to a dip in key indices.
The Nifty 50 index opened at 24,100.10, down 173.70 points or 0.72 per cent, while the BSE Sensex fell by 585.95 points to settle at 79,748.86, marking a 0.73 per cent decline.
Market experts attributed the downturn to concerns over escalating tensions between the two nations, which overshadowed the underlying strength of India’s economy.
Despite the early losses, analysts maintained that the broader outlook for the markets remained positive, citing continued foreign institutional investment (FII) as a vote of confidence in India’s long-term growth prospects.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, commented, “The domestic macros construct is further rendered stronger by the high GDP growth expected this year and the declining interest rate environment. These are the reasons why FIIs have been on a buying spree in the Indian market during the last sixteen trading sessions. Investors should not panic and exit from the market now. Remain invested, monitor the developments and wait for the dust to settle.”
Sector-wise, the market felt broad-based pressure, with nearly all indices trading in the red. The Nifty Metal index led the decline, falling by more than 1 per cent. Nifty Realty and Nifty Auto also posted negative figures, reflecting a widespread cautious sentiment among investors.
Akshay Chinchalkar, Head of Research at Axis Securities, observed, “The selling inflicted some short-term damage by sending the Nifty below 24,200 on an intraday basis, but the big level bulls need to protect is 24,000 and then the critical 23,872. On the upside, the near-term bias will turn bullish only on a break of the 24,450-24,589 zone. The gift Nifty opened nearly 350 points down, but half an hour into trade, it had recovered somewhat, so we should brace for volatility.”
Global markets were mixed, with Japan’s Nikkei 225 index up by 1.47 per cent and Taiwan’s Weighted index gaining 1.19 per cent. Singapore’s Straits Times added 0.51 per cent. However, markets in Hong Kong and South Korea were trading in the negative at the time of reporting.
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