India's stock markets remained largely unaffected following the military strikes on terrorist camps across the border in Pakistan.
At close, the benchmark Sensex rose by 0.13 percent, gaining 106 points to settle at 80,747, while the Nifty edged up by 0.14 percent or 34.80 points, closing at 24,414.40.
The Indian rupee depreciated marginally, ending the day at 84.84 against the US dollar, down 0.47 percent from its previous close of 84.49. Meanwhile, the 10-year government bond yield eased slightly, dipping by 1 basis point to 6.338 percent from 6.351 percent.
The currency market response to the strikes targeting terrorist camps in Pakistan and Pakistan-occupied Kashmir was relatively contained, with the rupee weakening by 40 paise in low offshore trading volumes. Experts noted that the Reserve Bank of India intervention seemed to prevent excessive depreciation despite speculative dollar buying by importers. So far, there have been no confirmed reports of retaliatory military action by Pakistan, and analysts believe market volatility will remain limited unless tensions escalate further.
In contrast, the Karachi Stock Exchange experienced the sharpest decline among Asian markets, plunging over 2.9 percent in response to the geopolitical developments. Market participants now await any potential response from Pakistan, which could shape regional sentiment further.
Meanwhile, investor focus also shifts to the US Federal Reserve’s policy meeting scheduled later today. While no immediate rate cut is expected, markets will closely watch for policy signals. Should the Fed maintain a hawkish tone or delay easing expectations, the US dollar could gain strength—adding downside pressure to the rupee and influencing capital flows in emerging markets.
Outlook for May 8
Prashanth Tapse, Senior VP (Research), Mehta Equities
Even as the country is in the middle of a military action against terrorists network across the border, markets witnessed gyration during intra-day trades but eventually managed to shrug off the uncertainty to end slightly higher. While the mood will be of caution due to Indo-Pak war tension, markets could witness choppy sessions with stock-specific activity over next few days.
Aditya Gaggar, Director of Progressive Shares
The market witnessed significant volatility during the day; a subdued start followed by a swift recovery. However, the Index faced resistance at higher levels and traded within a narrow range before closing at 24,414.40 with modest gains of 34.80 points. The Auto segment extended its outperformance by advancing over 1% followed by Realty, while FMCG and Pharma lagged. Broader market participation remained strong, with Midcap and Smallcap indices outperforming and rising over 1%. Technically, Nifty50 maintained its key support at 24,250, while 24,500 remains a critical resistance; while a breakout on either sides is likely to determine the next directional move.
Rupak De, Senior Technical Analyst at LKP Securities
The index continues to consolidate within a narrow range, having failed to move past the 61.80% retracement level of the previous decline from the all-time high of 26,277 to the recent low of 21,743. This consolidation may persist in the near term, as the index appears to be in no hurry to make a decisive move beyond the 24,000–24,550 range. A decisive breakout above 24,550 could potentially trigger a rally toward higher levels. On the downside, immediate support is placed at 24,200; a break below this level may extend the correction toward 24,000.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
