Mkts hold steady amid border conflict

The equity markets shrugged off early nerves on Wednesday following India's attack on Pakistani terror camps to end the day's trading session with quiet gains.

- Dipti Sharma

MUMBAI:

Despite pre-open indications of a sharp 1% gap-down, the benchmark indices opened only slightly lower and swiftly clawed back losses.

The Nifty 50 eked out a 0.1% gain, closing at 24,414.40 points, while the Sensex edged up 0.1% to settle at 80,746.78, reflecting the market's underlying resilience amid geopolitical headwinds. But India VIX, often called the market's fear gauge, spiked 4% intraday before settling just 0.3% higher—signaling elevated volatility despite the lukewarm market reaction to escalating India-Pakistan conflict.

"We will have volatility and downside from time to time as global economic developments play out," Aashish Somaiyaa, chief executive of WhiteOak Capital AMC, said. Considering the Nifty 50's 10% gain in the past month amid global trade uncertainty, Somaiyaa said the market may have priced in too much optimism already. The optimism may also stem from a stabilizing rupee, easing bond yields, and a handful of strong earnings from large-cap companies, he added.