Market Resilience Amid Indo-Pak Tensions and New India-UK Trade Deal

In a volatile session marked by geopolitical tensions, India's benchmark stock indices, Sensex and Nifty, ended higher on Wednesday. This uptick came after the Indian military launched missile strikes against terrorist hideouts in Pakistan and Pakistan-Occupied Kashmir, including key strongholds like Bahawalpur and Muridke.

Opening sharply down by 692 points, the 30-share BSE Sensex managed to close 105.71 points higher, thanks to buying in private banks and select auto shares such as Tata Motors. Similarly, the 50-share NSE Nifty rose 34.80 points to end at 24,414.40, recovering from initial dips by late afternoon.

Aside from geopolitical issues, a landmark free trade agreement between India and the UK also buoyed market sentiment, especially in sectors such as textiles, automobiles, and IT, by reducing tariffs on 99% of Indian exports. Analysts suggest that while Indo-Pak tensions may cause short-term volatility, they rarely have a lasting negative impact on Indian markets.

(With inputs from agencies.)