Geopolitical Tensions Halt Seven-Day Market Rally, Sensex and Nifty Close in Red

Indian equity benchmarks Sensex and Nifty closed in the red after seven days of gains, impacted by India-Pakistan tensions following Pahalgam terror attacks. Major indices dipped as cautious investors opted for sidelines amid volatility and uncertainty, affecting sectors like realty and consumption.

Indian equity markets, Sensex and Nifty, ended their impressive seven-session winning streak as they closed negatively on Wednesday. The downturn followed increased geopolitical tensions due to India's diplomatic actions against Pakistan in response to recent terror attacks in Pahalgam.

At the closing bell, the Nifty 50 index at the National Stock Exchange (NSE) stood at 24,246.70, falling by 82.25 points or 0.34 percent. Similarly, the BSE Sensex saw a decline of approximately 315 points or 0.39 percent, closing at 79,801.43.

Market activity was significantly impacted by geopolitical uncertainties as investors exhibited caution. According to Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity, investor sentiment remained cautious due to the tensions with Pakistan. The sectors most affected included realty, consumer goods, and IT, while sectors such as pharma and metals displayed resilience.

In the derivatives market, there was a noticeable decline with 122 stocks falling against 99 gainers. Vinod Nair, Head of Research at Geojit Investments Limited, noted a pattern of mild profit booking amidst this uncertainty, as global markets too experienced similar selling pressures due to the ongoing US-China trade tensions.

(With inputs from agencies.)