Indian benchmark indices ended higher on Wednesday, rebounding from early losses, amid heightened geopolitical tensions following India’s strikes on Pakistan and Pakistan-occupied Kashmir (PoK) under Operation Sindoor, launched in retaliation for last month’s attack in Kashmir.
The benchmark BSE Sensex added 105.71 points or 0.13% to close at 80,746.78, while the broader Nifty 50 index closed at 24,414.40, higher by 34.80 points or 0.14%.
The market capitalization of all listed companies on the BSE increased by Rs 1.44 lakh crore to Rs 423.50 lakh crore.
Sector Watch
Auto stocks led the gains, rising 1.7%, driven by strong momentum in Tata Motors, which surged 5.2% after shareholders approved a plan to split the company into two listed entities. Optimism around the India-U.K. free trade deal, seen as a positive for Tata’s British arm JLR, also lifted sentiment.
Automobile and textile stocks rallied on hopes of stronger export prospects following India’s long-awaited free trade agreement with the U.K.
In contrast, defence stocks slipped 1% after a volatile session, as geopolitical tensions escalated.
India launched strikes on Pakistan and Pakistan-occupied Kashmir (PoK) under Operation Sindoor, targeting nine “terrorist infrastructure” sites linked to last month’s deadly attack on Hindu tourists in Indian Kashmir. Pakistan claimed it had shot down five Indian fighter jets, marking the worst confrontation between the nuclear-armed neighbours in over two decades.
Among broader indices, the Nifty Smallcap 100 and Nifty Midcap 100 rose 1.4% and 1.6%, respectively.
Paytm shares ended over 7% higher after reporting a narrower consolidated net loss for the March 2025 quarter, despite exceptional items pressuring the bottom line. The company said it expects to turn profitable this quarter.
Expert View
Indian equity markets exhibited strong resilience amid recent Indo-Pak border tensions, the measured market response indicated that geopolitical risks were largely priced in and expectations of de-escalation is prevailing among investors, said Vinod Nair, Head of Research, Geojit Investments.
"At the same time, the progress on the India–UK FTA further buoyed investor optimism, driving gains in key sectors such as textiles, automobiles, and information technology. Globally, investor sentiment has improved as the United States and China signal a willingness to resume trade negotiations," said Nair.
Meanwhile, China’s recent interest rate cut contributed to a broadly positive tone across Asian markets, Nair said, adding that market focus will shift to FOMC meeting, "though rate cut appears unlikely, but FED comments will be keenly watched."
Global Markets
Global stocks held firm on Wednesday, with oil prices climbing amid anticipation of a key meeting between top U.S. and Chinese trade officials. However, caution lingered ahead of the U.S. Federal Reserve's rate decision, weighing on European equities and the U.S. dollar.
U.S. Treasury Secretary Scott Bessent and trade negotiator Jamieson Greer are set to meet China’s top economic official, in what could mark the first breakthrough in a trade war that has rattled global markets.
While the Fed is widely expected to hold rates steady later in the day, markets have scaled back expectations for a cut in June to just 30%, down from around 60% before last week’s strong U.S. jobs report.
U.S. stock futures edged higher, with S&P 500 futures up 0.6%, but Europe’s STOXX 600 and the FTSE 100 slipped about 0.3% each. The dollar extended its losing streak to a fourth session, and gold dropped 1.3%, falling more than $100 below last month’s record high.
Meanwhile, China announced a rate cut, injected more liquidity into the banking system, and expanded a channel for insurance funds to invest in equities. The moves saw limited market reaction as investors await broader fiscal stimulus and focus on the outcome of U.S.-China trade talks.
Rupee vs Dollar
The Indian rupee fell sharply on Wednesday, posting its steepest single-day drop in a month, as rising geopolitical tensions with Pakistan weighed on investor sentiment. A broader decline in Asian currencies also added pressure. The rupee ended 0.5% lower at 84.8250 against the U.S. dollar, its weakest close since April 9.
Meanwhile, the U.S. dollar gained ground, with the dollar index—measuring the greenback against six major currencies—rising 0.23% to 99.46.
Crude Impact
Oil prices rose for a second straight session on Wednesday, supported by optimism around upcoming U.S.-China trade talks and signs of slowing U.S. shale production, though gains were partially trimmed during the day.
Brent crude futures rose 34 cents, or 0.6%, to $62.49 a barrel by 1220 GMT, while U.S. West Texas Intermediate (WTI) crude gained 44 cents, or 0.7%, to $59.53 a barrel.
The benchmark BSE Sensex added 105.71 points or 0.13% to close at 80,746.78, while the broader Nifty 50 index closed at 24,414.40, higher by 34.80 points or 0.14%.
The market capitalization of all listed companies on the BSE increased by Rs 1.44 lakh crore to Rs 423.50 lakh crore.
Sector Watch
Auto stocks led the gains, rising 1.7%, driven by strong momentum in Tata Motors, which surged 5.2% after shareholders approved a plan to split the company into two listed entities. Optimism around the India-U.K. free trade deal, seen as a positive for Tata’s British arm JLR, also lifted sentiment.
Automobile and textile stocks rallied on hopes of stronger export prospects following India’s long-awaited free trade agreement with the U.K.
In contrast, defence stocks slipped 1% after a volatile session, as geopolitical tensions escalated.
India launched strikes on Pakistan and Pakistan-occupied Kashmir (PoK) under Operation Sindoor, targeting nine “terrorist infrastructure” sites linked to last month’s deadly attack on Hindu tourists in Indian Kashmir. Pakistan claimed it had shot down five Indian fighter jets, marking the worst confrontation between the nuclear-armed neighbours in over two decades.
Among broader indices, the Nifty Smallcap 100 and Nifty Midcap 100 rose 1.4% and 1.6%, respectively.
Paytm shares ended over 7% higher after reporting a narrower consolidated net loss for the March 2025 quarter, despite exceptional items pressuring the bottom line. The company said it expects to turn profitable this quarter.
Expert View
Indian equity markets exhibited strong resilience amid recent Indo-Pak border tensions, the measured market response indicated that geopolitical risks were largely priced in and expectations of de-escalation is prevailing among investors, said Vinod Nair, Head of Research, Geojit Investments.
"At the same time, the progress on the India–UK FTA further buoyed investor optimism, driving gains in key sectors such as textiles, automobiles, and information technology. Globally, investor sentiment has improved as the United States and China signal a willingness to resume trade negotiations," said Nair.
Meanwhile, China’s recent interest rate cut contributed to a broadly positive tone across Asian markets, Nair said, adding that market focus will shift to FOMC meeting, "though rate cut appears unlikely, but FED comments will be keenly watched."
Global Markets
Global stocks held firm on Wednesday, with oil prices climbing amid anticipation of a key meeting between top U.S. and Chinese trade officials. However, caution lingered ahead of the U.S. Federal Reserve's rate decision, weighing on European equities and the U.S. dollar.
U.S. Treasury Secretary Scott Bessent and trade negotiator Jamieson Greer are set to meet China’s top economic official, in what could mark the first breakthrough in a trade war that has rattled global markets.
While the Fed is widely expected to hold rates steady later in the day, markets have scaled back expectations for a cut in June to just 30%, down from around 60% before last week’s strong U.S. jobs report.
U.S. stock futures edged higher, with S&P 500 futures up 0.6%, but Europe’s STOXX 600 and the FTSE 100 slipped about 0.3% each. The dollar extended its losing streak to a fourth session, and gold dropped 1.3%, falling more than $100 below last month’s record high.
Meanwhile, China announced a rate cut, injected more liquidity into the banking system, and expanded a channel for insurance funds to invest in equities. The moves saw limited market reaction as investors await broader fiscal stimulus and focus on the outcome of U.S.-China trade talks.
Rupee vs Dollar
The Indian rupee fell sharply on Wednesday, posting its steepest single-day drop in a month, as rising geopolitical tensions with Pakistan weighed on investor sentiment. A broader decline in Asian currencies also added pressure. The rupee ended 0.5% lower at 84.8250 against the U.S. dollar, its weakest close since April 9.
Meanwhile, the U.S. dollar gained ground, with the dollar index—measuring the greenback against six major currencies—rising 0.23% to 99.46.
Crude Impact
Oil prices rose for a second straight session on Wednesday, supported by optimism around upcoming U.S.-China trade talks and signs of slowing U.S. shale production, though gains were partially trimmed during the day.
Brent crude futures rose 34 cents, or 0.6%, to $62.49 a barrel by 1220 GMT, while U.S. West Texas Intermediate (WTI) crude gained 44 cents, or 0.7%, to $59.53 a barrel.
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