Benchmark equity indices closed with modest gains on Thursday as investors remained cautious amid heightened geopolitical tensions following Operation Sindoor—a targeted strike by Indian forces on terror camps in Pakistan after the recent Pahalgam attack.
Market sentiment remained volatile throughout the session, also weighed down by global uncertainty ahead of the US Federal Reserve’s policy decision. The Nifty recovered from an intraday low of 24,220 to end above the 24,400 level, reflecting cautious optimism.
According to a media report, in the latest trading session, the S&P BSE Sensex rose 105.71 points, a modest increase of 0.13%, closing at 80,746.78. The Nifty 50 index also saw a positive trend, gaining 34.80 points, or 0.14%, to finish at 24,414.40.
Ajit Mishra – SVP, Research, Religare Broking said, “On the index front, Nifty is attempting to hold the 24,100 level; a breach could lead to further downside towards 23,800. Until then, the index is expected to trade within the 24,100–24,600 range. In the current scenario, traders are advised to adopt a cautious approach and avoid aggressive positions until the market stabilizes.”
Notably, the broader market outpaced the major indices, with the S&P BSE Mid-Cap index soaring by 1.36% and the S&P BSE Small-Cap index climbing 1.16%. Overall, the market showed a positive breadth.
Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services, noted, “Progress on the U.S.-India trade deal is expected to offer near-term support, particularly for export-oriented sectors. Investors will also keep a close watch on geopolitical developments, corporate earnings, and U.S. macroeconomic data, which could drive short-term market consolidation.”
The NSE’s India VIX, a gauge of short-term market volatility, edged up by 0.34% to 19.06, indicating rising investor caution.
Sector-wise, the Nifty Auto index led the rally with a 1.66% gain, followed by the Nifty Consumer Durables index (1.18%) and the Nifty Realty index (1.12%), all outperforming the benchmark Nifty 50.
On the flip side, the Nifty FMCG index slipped 0.52%, while the Nifty Pharma index dropped 0.33%, underperforming the broader market.