Sensex and Nifty traded slightly lower for most of most sessions on Thursday, but fell sharply in the last 30 minutes of deals following reports of continued military operations in Kashmir “Sindoor” and Indian administer-made Kashmir ‘Sindoor’ and Indian military operations targeting Indian military operations. NSE’s Nifty dropped 140 points (0.6%) to close 24,273. Sensex declined 412 points (0.5%) to 80,334 points (0.5%). Both indices fell by almost 1% before reducing some of the losses.
“The market has fallen, but the VIX in India spiked late on Thursday after the government informed that Operation Sindore was still on. “We saw that we had some profit as the sentiment became negative.”
The VIX has finished at the 21st level, extending its recent expansion, with a 10.21% increase recently. The measure has risen almost 40% since April 15, suggesting that the option is seeing short-term risks in the market in the face of conflict and tariff concerns between India and Pakistan. VIX will surge when market uncertainty increases and vice versa. The index rose 65.7% on April 7th (the largest day-old advance in history), in response to global uncertainty over Donald Trump’s mutual tariffs.
In Pakistan, trading halted for an hour on Thursday after a benchmark index fell 7.2%.
“Historically, such geopolitical events tend to lead to increased market volatility over 30-40 days,” said Shrikant Chohan, Head of Equity Research at Kotak Securities. “As a result, traders with large positions can begin to reduce exposure and potentially reduce volume.” Foreign portfolio investors (FPIs) were net buyers worth Rs 2,008 on Wednesday, while domestic institutional investors (DIIS) sold 596 worth of shares worth Rs 596. Palviya said that as long as there is uncertainty and fear in the war, as long as emotions are weakened, he will move on, and if Nifty falls below the 24,200 support level, it could drop to 23,800 levels in the short term. “The next 48-72 hours are paramount to check whether tensions escalate or die into ground movement. This will determine the direction of the market.”
