Operation Sindoor impact on Indian stock market today: Indian equity benchmark indices, Nifty50 and BSE Sensex, are expected to open in red on Friday after continued escalation of tensions between India and Pakistan. Indian stock market’s reaction to the ongoing India-Pakistan tensions has till now been relatively muted.In fact, since the April 22 Pahalgam terror attack in Jammu and Kashmir, Nifty50 and BSE Sensex are actually up.Pakistan stock market on the other hand has crashed. Experts believe that the Indian stock market’s fundamental resilence will continue to work in its favour, despite short term volatility.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Under normal circumstances, on a day like this, the market would have suffered deep cuts. But this is unlikely due to two reasons. One, the conflict, so far, has demonstrated India’s clear superiority in conventional war fare, and therefore, further escalation of the conflict will inflict huge damage to Pakistan. Two, the market is inherently resilient supported by global and domestic macros.Weak dollar and potentially weakening US and Chinese economies are good for the Indian market. The domestic macros construct is further rendered stronger by the high GDP growth expected this year and the declining interest rate environment. These are the reasons why FIIs have been on a buying spree in the Indian market during the last sixteen trading sessions. Investors should not panic and exit from the market now. Remain invested, monitor the developments and wait for the dust to settle.”Indian equity markets closed lower on Thursday amid volatility caused by escalating India-Pakistan tensions. Market uncertainty is likely to continue as participants monitor ongoing developments between the two nations and upcoming US trade-related announcements. Market volatility on Thursday led to a Rs 5 lakh crore reduction in investors’ wealth. US stocks advanced on Thursday following positive developments in US-UK trade relations, whilst President Trump indicated forthcoming Chinese trade discussions could be more comprehensive than expected.Also Check | Operation Sindoor Live UpdatesAsian equities edged higher on Friday after Trump’s announcement of a UK trade agreement and hints at possible reduction in Chinese tariffs pending successful negotiations.Gold prices strengthened on Friday as investors acquired the metal after its previous session’s decline, whilst market participants awaited the weekend’s trade discussions between the United States and China.Foreign portfolio investors purchased shares worth Rs 2,008 crore net on Thursday, whilst domestic institutional investors sold Rs 596 crore net.The Indian rupee experienced its most significant one-day decline in over 30 months, dropping by 81 paise to close at 85.58 against the US dollar on Thursday. This substantial decrease was primarily attributed to the escalating geopolitical tensions between India and Pakistan.Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said: “We expect the rupee to trade with a negative bias on the strong dollar and ongoing geopolitical tensions between India and Pakistan. Any further escalation may further pressurise the rupee. However, FII inflows may support the rupee at lower levels. Traders may take cues from weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of 85.20 to 86.“
