Operation Sindoor impact on Indian stock market: Nifty50, BSE Sensex open in red India targets Pakistan terrorist facilities

Stock market today: Indian equity benchmark indices, Nifty50 and BSE Sensex, opened in red on Wednesday after India carried out Operation Sindoorto target Pakistan’s terrorist facilities. Nifty50 and BSE Sensex, the Indian equity benchmark indices, were in red marginally even though the pre-market session had suggested stock markets will plunge.At 9:16 AM, Nifty50 was trading at 24,351.40, down 28 points or 0.12%. BSE Sensex was at 80,555.33, down 86 points or 0.11%.In the early hours of Wednesday, India announced conducting Operation Sindoor, targeting terrorist facilities in Pakistan and Pakistan-occupied Jammu and Kashmir. The Indian Army confirmed striking terror infrastructure that had been used to plan and direct attacks against India.Ajay Bagga, a Banking and Market Expert, told ANI, “The geopolitical risk that was hanging over the Indian markets has got crystallised today with the Indian strikes on PoK and Pakistan-based terror camps. Indian markets will open with a negative gap as we saw when the Uri and Balakot strike news was announced.”Also Check | Operation Sindoor Live UpdatesThe expert indicated that subsequent market developments would be influenced by the unfolding circumstances in the days ahead.“The future impact on the market will depend on whether this strike remains contained to today or if it expands. Geopolitical risk remains elevated and we could see some more selling in the Indian markets,” Bagga said.The equity markets weakened on Tuesday as heightened tensions between India and Pakistan made investors cautious.“The geopolitical tensions between India and Pakistan have put a halt to the strong market rally seen in the past 15-16 days,” said Shrikant Chouhan, Head – Equity Research, Kotak Securities.According to Chouhan, market volatility might cause the Nifty to decline by 200-400 points, though a more substantial decrease is improbable barring severe events such as military conflict.Market participants will monitor the US Federal Reserve’s rate-setting meeting outcome on May 7. Despite expectations of unchanged interest rates, Federal Reserve chairperson Jerome Powell’s views on inflation and growth amidst tariff uncertainties could influence immediate market direction.Foreign portfolio investors (FPIs) recorded net purchases of ₹3,795 crore on Tuesday, whilst domestic institutional investors (DIIs) offloaded equities worth ₹1,398 crore.US stocks declined for a second consecutive session on Tuesday following unclear statements from US President Donald Trump and Treasury Secretary Scott Bessent regarding trade agreement timelines.Gold prices decreased on Wednesday as positive sentiment regarding potential US-China trade discussions reduced safe-haven asset demand, whilst investors awaited the Federal Reserve’s policy meeting later in the day.