Markets Volatile as India Strikes Back After Pahalgam Attack

Indian equity markets witnessed heightened volatility on Wednesday following the Indian Armed Forces’ missile strikes on terror camps in Pakistan and Pakistan-occupied Kashmir (PoK), conducted under Operation Sindoor in retaliation for the recent Pahalgam terror attack.

In early morning trade, both benchmark indices — the BSE Sensex and NSE Nifty — oscillated sharply within a wide range, reflecting investor caution amid escalating geopolitical tensions.

The Sensex touched a high of 80,844.63 before dipping to an intra-day low of 79,937.48, while the Nifty moved between a high of 24,449.60 and a low of 24,220.

At 11:00 AM, the Sensex was down 87.81 points at 80,553.26 and the Nifty traded 16.55 points lower at 24,365.05, indicating a cautious sentiment among market participants.

Market experts attributed the volatility to geopolitical uncertainty and potential implications on foreign investment and regional stability. “While the market had been rallying on strong earnings and macroeconomic indicators, the sudden spike in geopolitical risk is causing nervousness,” said a senior analyst from a Mumbai-based brokerage.

Broader market indices and sectoral indices also showed mixed trends, with defense-related stocks witnessing a modest uptick amid speculation over increased spending and strategic focus.

The missile strikes, targeting terror strongholds in Bahawalpur and Muridke, were seen as a direct response to the Pahalgam attack that killed 26 civilians, sparking nationwide outrage and calls for action.

As the situation develops, investors are expected to remain watchful, especially for any further geopolitical escalation or statements from the government that could impact market dynamics.