Indian Markets Open Lower Amid Escalating Tensions with Pakistan

BENGALURU, India — India’s benchmark stock indices opened lower on Wednesday amid rising geopolitical tensions following military strikes on Pakistan and Pakistan-occupied Kashmir. As of 9:15 a.m. IST, the Nifty 50 had fallen 0.6% to 24,233.3, while the BSE Sensex lost 0.86% to 79,948.8.

All 13 major sectors reported losses, with small-cap and mid-cap stocks declining by 1.5% and 1.3%, respectively. The Indian military conducted strikes on nine sites identified as “terrorist infrastructure” linked to a recent attack in Kashmir that killed 26 Hindu tourists.

In a statement, Pakistan condemned the strikes as a “blatant act of war,” and the United Nations called for both nations to exercise maximum military restraint. Devarsh Vakil, head of prime research at HDFC Securities, remarked, “Geopolitical uncertainties will drag domestic equities today, and markets will closely watch communications from both countries for any signs of further escalation.”

At 9:16 a.m. IST, the Nifty 50 was recorded at 24,351.40, down 28 points or 0.12%, while the Sensex was at 80,555.33, down 86 points or 0.11%.

VK Vijayakumar, Chief Investment Strategist of Geojit Investments Limited, noted that the market’s response to Operation Sindoor was initially concerning but may not linger. “The market is unlikely to be impacted by retaliatory strikes as these were expected,” he stated.

Major companies on the Sensex, including HCL Tech and Asian Paints, saw declines, with some dropping by as much as 1.5%. Positive movements were noted in Tata Motors, which rose over 4% after shareholders agreed to split the company into separate divisions for passenger and commercial vehicles.

The initial market response reflected caution from investors, with the uncertainty rooted in the border situation. Market analyst Ajay Bagga indicated this risk had come into sharper focus with India’s actions against terror camps.

Shrikant Chouhan, head of equity research at Kotak Securities, commented, “Geopolitical tensions between India and Pakistan have halted the recent strong market rally,” predicting volatility that might push the Nifty down by 200-400 points but noting serious declines would require major military conflict.

As investors monitored the situation, they awaited the outcome of the US Federal Reserve’s meeting that could influence global markets. Despite nervousness, foreign portfolio investors recorded net purchases of ₹3,795 crore on Tuesday.