Indian share markets were lower on Wednesday morning but recovered some early losses following India’s strikes on Pakistan and Pakistan-administered Kashmir.
These military actions were in retaliation for last month’s deadly Kashmir attack that killed 26 tourists, report agencies.
The benchmark Nifty 50 initially opened 0.6% lower but had trimmed losses to 0.2% by 10:30am.
Similarly, the Sensex was down 0.2%. Out of 13 sectors, nine traded lower. However, the mid-cap index gained 0.3%, while small-caps dipped 0.1%.
Amid the geopolitical tensions, Dharmesh Kant, head of equity research at Cholamandalam Securities, advised caution, stating, “The market move may not settle so soon.”
According to Kant, investors had taken short positions ahead of the anticipated Indian retaliation, and are now covering those positions.
The cross-border conflict escalated as Pakistan claimed it had shot down five Indian fighter jets—the worst skirmish in over two decades between the nuclear-armed neighbours.
Both sides have engaged in intense shelling across the disputed Himalayan region of Kashmir since the attack by Islamist militants.
Defence stocks showed mixed performance. Paras Defence and Space Technologies rose around 2%, while Bharat Electronics and Hindustan Aeronautics fluctuated between gains and losses.
Textile stocks rallied on the back of the India–UK trade deal signed on Tuesday, which allows Indian textile exports to enter the UK at zero tariffs—boosting competitiveness against Chinese and Bangladeshi exports.
Among notable stock movements, Tata Motors surged 3.2% after shareholders approved a plan to split the automaker into two listed entities.
The trade deal with the UK also contributed to the rally. Paytm jumped 6% after the company announced it expects to become profitable this quarter.