- Indian shares remained largely flat despite geopolitical tensions.
- Operation Sindoor led to a significant dip in Pakistan’s KSE-100 index.
- Asian markets gained as the U.S. and China prepare for trade talks.
Operation Sindoor, India’s targeted strike against key locations in Pakistan and Pakistan-occupied Kashmir, has resulted in mixed market reactions.
Meanwhile, Asian markets showed resilience, driven by optimism surrounding the upcoming U.S.-China trade talks. U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet with China’s Vice Premier He Lifeng in Switzerland this weekend.
Stock Market Resilience Amid Geopolitical Tensions and Trade Talks
The Indian stock market remained largely flat on Wednesday despite the heightened geopolitical situation following India’s Operation Sindoor. The targeted strike impacted Pakistan’s KSE-100 index significantly, causing a near 6% decline. However, Indian benchmarks like the Sensex and Nifty50 remained stable, with modest gains of 9 points and 7.3 points, respectively.
Tata Motors led the gains, surging 4% on positive investor sentiment, while other major gainers included State Bank of India and Bajaj Finance. However, sectors such as FMCG, IT, and pharma saw slight declines, indicating cautious investor sentiment amid geopolitical uncertainty.
In Asia, markets remained buoyant with optimism surrounding the upcoming U.S.-China trade talks. The Hang Seng and CSI 300 indices gained as traders anticipated potential breakthroughs that could ease ongoing trade tensions. The U.S. dollar also strengthened on the news, reflecting increased investor confidence.
The broader global market, however, displayed mixed sentiment. The U.S. markets closed in the red, with the Dow Jones, S&P 500, and Nasdaq all recording losses. Meanwhile, foreign institutional investors (FIIs) continued their buying spree in India, with a cumulative investment of Rs 43,940 crores over the last 14 trading days, focusing mainly on large-cap stocks.
Despite geopolitical tensions, market resilience in India, driven by strong FII inflows and optimism over U.S.-China trade talks, provides a cautiously positive outlook.
“In the midst of chaos, there is also opportunity.” – Sun Tzu
