Benchmark stock indices Sensex and Nifty closed higher in a volatile session on Wednesday as India launched missile strikes on terrorist hideouts in Pakistan and Pakistan-occupied Kashmir.
After gyrating between gains and losses during the day, the 30-share BSE Sensex ended 105.71 points, or 0.13 per cent, higher at 80746.78. The index opened sharply down by 692 points and fell further to hit a day’s low of 79937.48 in early trade.
However, buying in private banks and select auto shares such as Tata Motors helped the barometer recover most of the losses and hit a high of 80844.63 later.
The 50-issue Nifty of NSE advanced by 34.80 points, or 0.14 per cent, to settle at 24414.40. Nifty moved between a high of 24449.60 and a low of 24220 during the session.
Broader markets also recouped intraday losses and closed higher by more than a per cent. Sectoral indices closed mixed as auto, realty, and metal sectors advanced while pharma and FMCG ended in the red.
“Geopolitical tensions, following India’s military response to a terrorist attack, triggered a gap-down opening. However, a swift recovery helped the indices edge higher by the close,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
From the 30-share Sensex firms, Tata Motors jumped the most by 5.05 per cent as India and the UK sealed a trade deal to reduce duties on most traded goods.
FIIs bought equities worth ₹3,794.52 crore on Tuesday.
“History shows that Indian markets demonstrate strong resilience once clarity returns. Unless accompanied by broader economic or global shocks, Indo-Pak tensions have not had a lasting negative impact,” said Pankaj Singh, small case manager and Founder and principle Researcher at SmartWealth.ai.
Rupee falls
The rupee depreciated 42 paise to close at 84.77 against the US dollar on Wednesday.
At the interbank foreign exchange, rupee opened at 84.65 and moved between an intra-day high of 84.47 and a low of 84.93 against the greenback.
Precaution exercise
Amid Indo-Pak border tension, the BSE and the NSE have reportedly taken precautionary measures by blocking their websites for international users.