MUMBAI: Benchmark indices closed lower on Thursday, with the Sensex slipping nearly 412 points in a volatile session amid rising geopolitical tensions between India and Pakistan. Selling pressure in banking, FMCG and auto stocks pulled the market down after a firm start.
The 30-share Sensex declined by 411.97 points or 0.51 per cent to end at 80,334.81, with 23 of its constituents closing in the red.
Sensex opened on a positive note and hit a high of 80,927.99 in late-morning deals but lost ground in the latter half of the session. It fell as much as 759.17 points or 0.94 per cent to touch a low of 79,987.61 during pre-close trade.
The broader NSE Nifty also retreated, shedding 140.60 points or 0.58 per cent to settle at 24,273.80. Intra-day, it slipped 264.2 points or 1 per cent to a low of 24,150.20.
The decline came after Indian armed forces reportedly foiled an attempted strike by the Pakistani military, which tried to hit multiple targets in Northern and Western India using drones and missiles on Wednesday night.
In retaliation, Indian forces destroyed an air defence system in Lahore and struck other sites across Pakistan and Pakistan-occupied Kashmir in a 25-minute “measured and non-escalatory” response.
Targets attempted by Pakistan included key defence locations such as Awantipura, Srinagar, Jammu, Pathankot, Amritsar, Kapurthala, Jalandhar, Ludhiana, Adampur, Bhatinda, Chandigarh, Nal, Phalodi, Uttarlai and Bhuj.
All were neutralised by India’s Integrated Counter Unmanned Aircraft System grid and air defence systems, according to the defence ministry.
Laggards
Among Sensex components, major laggards included Eternal, Mahindra & Mahindra, Maruti, Bajaj Finance, Tata Steel, Bharti Airtel, Bajaj Finserv, Asian Paints, Power Grid and State Bank of India.
On the other hand, Kotak Mahindra Bank, Axis Bank, Titan, HCL Tech, Tata Motors, Infosys and Tata Consultancy Services managed to post gains.
The BSE midcap index fell 1.90 per cent while the smallcap gauge declined 1.05 per cent.
The Indian equity market experienced profit-booking by the end of the trading day due to escalating tensions between India and Pakistan, marked by increased cross-border exchanges.
The FOMC policy meeting provided little reassurance, as the Fed expressed concerns that aggressive US tariffs could fuel inflation and raise unemployment.
However, global markets remained largely stable, supported by optimism around a potential US-UK trade deal and early signs of renewed trade dialogue with China.
