Sensex, Nifty end higher after volatile trade as India avenges Pahalgam attack

Mumbai, May 7: Benchmark stock indices Sensex and Nifty closed higher in a volatile session on Wednesday as India launched missile strikes on terrorist hideouts in Pakistan and Pakistan-Occupied Kashmir.

After gyrating between gains and losses during the day, the 30-share BSE Sensex ended 105.71 points or 0.13 per cent higher at 80,746.78. The index opened sharply down by 692 points and fell further to hit a day's low of 79,937.48 in early trade.

However, buying in private banks and select auto shares such as Tata Motors helped the barometer recover most of the losses and hit a high of 80,844.63 later.

The 50-issue Nifty of NSE advanced by 34.80 points or 0.14 per cent to settle at 24,414.40. Nifty moved between a high of 24,449.60 and a low of 24,220 during the session.

Broader markets also recouped intraday losses and closed higher by more than a per cent. Sectoral indices closed mixed as auto, realty, and metal sectors advanced while pharma and FMCG ended in the red.

"Geopolitical tensions, following India’s military response to a terrorist attack, triggered a gap-down opening. However, a swift recovery helped the indices edge higher by the close," Ajit Mishra – SVP, Research, Religare Broking Ltd said.

In retaliation for the Pahalgam terror attack, Indian armed forces carried out missile strikes early Wednesday on nine terror targets in Pakistan and Pakistan-Occupied Kashmir including the Jaish-e-Mohammad stronghold of Bahawalpur and Lashkar-e-Taiba's base Muridke.

The military strikes were carried out under 'Operation Sindoor' two weeks after the massacre of 26 civilians in Jammu and Kashmir's Pahalgam.

"Even as the country is in the middle of a military action against terrorist network across the border, markets witnessed gyration during intra-day trade 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," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

From the 30-share Sensex firms, Tata Motors jumped the most by 5.05 per cent as India and the UK sealed a trade deal to reduce duties on most traded goods. The trade deal will make it easier for British firms to export whisky, cars, and other products to India.

Bajaj Finance, Eternal, Adani Ports, Tata Steel, HDFC Bank, Kotak Bank, ICICI Bank, Titan, Mahindra & Mahindra and Power Grid were among the gainers.