Markets End Higher Amid Geopolitical Tensions: Nifty, Sensex Show Resilience Post ‘Operation Sindoor’

On a day dominated by high-stakes geopolitical action and volatile trading flows, Indian markets were able to close in the plus, demonstrating the resilience that has characterized investor sentiment over the past few months.

The NSE Nifty closed at 24,414.40, up 34.80 points (0.14%), while the BSE Sensex rose 105.71 points (0.13%), closing at 80,746.78. The indices remained firm despite intra-day volatility after news of India's precision missile strikes on nine terrorist hideouts in Pakistan and Pakistan-Occupied Kashmir broke out. This military operation, code-named 'Operation Sindoor', was undertaken in retaliation for the Pahalgam terror attack that killed 26 civilians two weeks ago.

During the session, markets moved in narrow ranges, a sign of investor restraint in the face of Indo-Pak tensions. Yet, the overall story was tranquil, aided predominantly by continued Foreign Institutional Investor (FII) inflows, which have aggregated ₹43,940 crore during the past 14 trading days.

Key Gainers and Losers

Top Sensex gainers included Tata Motors, Bajaj Finance, Adani Ports, Tata Steel, and Power Grid, while Asian Paints, ITC, Reliance Industries, and HCL Tech fell. Sector rotation persists, with a change in preference towards large-cap stocks, especially those supported by robust earnings visibility.

Global and Macro Sentiments

Asian markets largely closed higher, with advancers in Kospi, Shanghai, and Hang Seng, though Japan's Nikkei 225 defied the trend. European indexes opened soft, tracking concerns over world growth. Meanwhile, Brent crude was up 0.64% at $62.55 per barrel, as markets track geopolitical risk in the region.

Looking Ahead

The attacks, while large, were non-escalatory in nature. Market observers point out that the action was mostly expected and hence already factored in. With the recent signing of the India–UK Free Trade Agreement and robust FII flows, the long-term picture is positive. Nevertheless, investors are recommended to remain vigilant about developments along the border and have a stock-specific strategy in the near term.