Investors become apprehensive as geopolitical tensions rise, pulling key indices down even as global market optimism prevails
India’s benchmark indices saw a highly volatile trading session today, ending sharply lower on account of major fag-end selling, with Sensex plummeting 412 points and the Nifty crossing the 24,300 mark. Increased volatility followed India’s military actions across the Line of Control (LoC), charging investor nerves.
In spite of this volatility, there is still hope for short-term export sector gains if the hoped-for US-India trade deal materializes, providing some possible support in the face of continued uncertainties.
Dramatic Close: Late-Selling Wipes Out Early Gains
The day started off on a relatively stable note, but turned sharply negative in the last hour of trade as fears of geopolitical risk overpowered market fundamentals. The BSE Sensex finished lower by 412 points, while the NSE Nifty fell below the psychological level of 24,300.
Fag-end selling, fueled by institutional conservatism and retail panic, ruled the last part of the trading day. The selling was aggravated by uncertainty after India’s targeted attacks on nine terror camps along the LoC, generating fresh fears in South Asia’s political scenario.
Stock Highlights: Winners and Losers of the Day
Among the prominent laggards, Eternal shares fell 4%, and Mahindra & Mahindra (M&M) lost 3%, both indicating investor discomfort with today’s risk environment.
Conversely, Voltas surged more than 3% after reporting a phenomenal Q4 net profit of ₹241 crore, a 100% increase over the same period last year. Likewise, Tata Chemicals climbed 2% after trimming its Q4 net loss to ₹56 crore, reflecting improved operations.
But Dabur India dropped 4% after a poor Q4 performance, and Gensol Engineering edged down 5% after the Securities Appellate Tribunal (SAT) declined interim relief in a pending case.
Global Snapshot: Mixed Feelings Across Global Markets
World markets presented a mixed picture. As of 10:10 a.m. Tokyo time:
- S&P 500 futures moved up 0.4%, showing optimism in the US.
- Hang Seng futures fell 0.6%, with Chinese equities softening.
- Japan’s Topix fell 0.2%, as profit-taking ensued.
- Australia’s S&P/ASX 200 remained flat, with little reaction to global cues.
- Euro Stoxx 50 futures edged up 0.4%, indicating optimism for the European open.
These global signals provided limited support to Indian equities as regional geopolitical tensions weighed heavily.
Regional Shock: Pakistan Stock Exchange Halts Trading After 7% Crash
In a dramatic regional twist, Pakistan’s stock exchange suspended trading for a while following a sharp 7% slide, a maneuver called the “Sindoor effect.” The crash came following Indian military attacks and is indicative of increased investor concern in border markets.
The unprecedented suspension signals the interwoven nature of South Asian geopolitics and finance risks, especially at times of increased military actions.
Looking Ahead: Can US-India Trade Talks Stabilize the Market?
Though short-term prognosis is hazy, observers are banking on development in US-India trade talks, which will help generate pace for export-reliant industries such as IT, pharma, and textiles. There is hope that reduced trade barriers and enhanced cooperation would insulate India’s economy against geopolitical currents.
But, going by current atmosphere, market trend is most likely to stay uncertain, as it will continue to be determined largely by diplomatic maneuvers, cross-border tensions, and global sentiment.
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