BSE Sensex and Nifty 50 Hold Ground Despite Geopolitical Concerns

Indian equity markets ended the day on a cautious note, recovering from intraday lows but still in the red. The BSE Sensex closed at 79,081.03, down 720.40 points or 0.90%, while the NSE Nifty 50 settled at 24,021.95, down 224.75 points or 0.93%. The decline was driven by escalating Indo-Pak tensions following the Pahalgam terror attack, which has led to diplomatic downgrades and border skirmishes. However, tech stocks provided some relief, with the Nifty IT Index being the only sectoral index in the green.

Key Factors Behind the Market Decline
Geopolitical Uncertainty Grips Investors
The market mood turned sour as tensions between India and Pakistan intensified after the April 22 Pahalgam terror attack, which killed 26 civilians. India’s suspension of the Indus Waters Treaty and reports of firing along the Line of Control (LoC) have heightened fears of escalation. Investors remained wary of holding long positions over the weekend, contributing to the sharp sell-off. The Sensex dropped over 1,200 points intraday, hitting a low of 78,606, while the Nifty fell below 23,850 before a partial recovery.

Volatility Index Signals Rising Fear
The India VIX, a measure of market fear, surged 6% on Friday, marking an 8% increase over the past five trading sessions. This spike reflects growing investor anxiety amid geopolitical developments and uncertainty about India’s next steps. Posts on X echoed this sentiment, with users noting the market’s skittishness ahead of a possible military response.

Small and Midcap Stocks Under Pressure
Broader markets faced significant selling, with the BSE MidCap Index falling 2.5% to 42,430.40 and the BSE SmallCap Index declining 2.8% to 47,904.28. Market observers attribute the correction to stretched valuations, with small and midcap stocks already down 14% in 2025. Analysts suggest further declines may be on the horizon as earnings growth remains uncertain.

Bright Spot: Tech Stocks Outperform
Despite the broader market downturn, tech stocks bucked the trend, buoyed by positive sentiment from recent IT earnings. The Nifty IT Index rose 1.2%, with TCS gaining 1.43%, Infosys up 1.03%, and Tech Mahindra advancing 0.8%. HCL Technologies’ recent results provided a sentiment boost, helping the sector weather the storm of geopolitical concerns.

Earnings Watch
Investors are now focusing on upcoming earnings reports for further cues. On April 25, companies like Reliance Industries, Maruti Suzuki, and RBL Bank announced their quarterly results. Reliance reported a modest 2.4% rise in net profit to ₹19,407 crore, while Maruti Suzuki’s profit dipped 4% to ₹11,619 crore. Other firms like Tata Technologies, L&T Finance, Hindustan Zinc, and Dr Lal PathLabs also released updates, with mixed outcomes adding to market uncertainty.

Looking Ahead
The market’s near-term trajectory remains uncertain as geopolitical tensions continue to loom large. While tech stocks have shown resilience, broader market recovery hinges on de-escalation along the border and clearer earnings growth signals. Investors are advised to stay cautious and monitor developments closely.

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The post Markets Recover Slightly but Remain Jittery Amid Indo-Pak Tensions; Tech Stocks Shine first appeared on New Delhi Post.

Mumbai, April 21 – Indian equity markets kicked off the week on a buoyant note, tracking positive sentiment from Asian peers and boosted by strong corporate earnings from leading financial institutions. The benchmark indices opened significantly higher on Monday, with the NIFTY50 breaching the 24,000 mark for the first time since January 6, 2025, and the SENSEX rallying over 600 points in early trade.

By 9:41 AM, the S&P BSE SENSEX climbed 622.35 points or 0.79% to reach 79,175.55, while the NSE NIFTY50 rose 167.40 points or 0.70% to trade at 24,019.05. The market momentum was led by robust gains in the banking and IT sectors, with the Nifty Bank index scaling new heights above the 55,000 mark.

Strong Sectoral Performance and Market Breadth

Among sectoral indices, Nifty Private Bank rose by 1.70%, Nifty PSU Bank gained 1.16%, and Nifty IT added 0.90%, leading the early surge. The broader market followed suit, with midcap and smallcap indices trading in the green. Market breadth was decisively positive, with 1,484 stocks advancing, 946 declining, and 73 remaining unchanged out of 2,503 traded stocks on the NSE.

Foreign Portfolio Investors (FPIs), despite net outflows of ₹23,103 crore in April so far, pumped ₹8,472 crore into equities in the holiday-shortened week ending April 18, indicating selective optimism.

Top Gainers and Stocks in Focus

Tech Mahindra, Axis Bank, Infosys, HDFC Bank, and SBI emerged as top gainers on the NIFTY50, rising up to 2.92%. On the downside, Adani Ports, Tata Consumer Products, and Titan were among the biggest laggards.

Notably, HDFC Bank shares hit a record high of ₹1,950 after reporting a stellar Q4 performance with a sharp drop in loan provisioning. Provisions fell 76.4% year-on-year, boosting investor confidence.

Infosys also gained over 2% despite an 11.8% dip in Q4 net profit, thanks to its record free cash flow and improved operating margin. Tata Elxsi, meanwhile, rose nearly 4% following its Q4 results, even as revenue declined sequentially. Investors reacted positively to its steady YoY income growth and continued strength in the engineering services sector.

Global Market Cues

Global cues were mixed following the Easter weekend. Tokyo’s Nikkei 225 fell 1.25%, while the Shanghai Composite rose 0.35%. Taiwan’s Taiex declined 1.2%, and South Korea’s Kospi remained flat. Markets in Hong Kong and Australia were closed for the holiday.

In the US, Wall Street ended last week on a cautious note. The S&P 500 edged up 0.13%, while the Dow Jones dropped 1.33%. The Nasdaq fell slightly by 0.13% amid uncertainties over tech earnings and trade policies.

Outlook and Volatility

India VIX, the volatility index, was up by 1.60% at 15.72, reflecting mild investor caution ahead of upcoming earnings and macroeconomic indicators. Market analysts remain optimistic about the medium-term trajectory, especially with improving corporate balance sheets and favorable global cues.

As investors look ahead to further earnings releases and policy updates, Monday’s rally signals continued bullishness in India’s capital markets despite global headwinds and domestic FPI concerns.

The post Indian Markets Open Strong: NIFTY50 Crosses 24,000, SENSEX Surges Over 600 Points; Nifty Bank Hits Record High first appeared on New Delhi Post.