Dalal Street Ends Strong as Markets Show Resilience, Recover from Losses After Delhi Blast

Dalal Street Climbs Wall of Worry, Ends Higher as Markets Stay Resilient After Delhi Blast

Indian stock markets demonstrated remarkable resilience on November 11, shrugging off early jitters and geopolitical concerns following the Delhi blast. After a volatile start, both benchmark indices — the Nifty 50 and Sensex — bounced back sharply in the second half to close near the day’s high, signaling investor confidence and market maturity amid unsettling news.

At the close, the Sensex jumped 364.43 points, or 0.44%, to settle at 83,899.78, while the Nifty 50 gained 121 points, or 0.47%, ending the day at 25,694.95. The market’s ability to recover from nearly half a percent decline earlier in the session highlighted Dalal Street’s growing ability to “climb the wall of worry” and stay focused on economic fundamentals.

Indian Markets Recover From Early Losses, Show Strong Resilience

The trading session began on a cautious note as news of the high-intensity blast near Delhi’s Red Fort led to early sell-offs in the morning. However, the broader market sentiment remained largely intact, supported by positive global cues, foreign inflows, and sectoral rotation into defensives and tech stocks.

Analysts said the rebound was a reflection of how Indian markets have matured over the years, showing limited reaction to one-off geopolitical or terror-related incidents.

“Markets are typically quite resilient to such incidents, based on the experience of the past several years,” said Vikas Gupta, CEO of Omniscience Capital. “This looks like an isolated event, and as long as there is a strong and swift response from the authorities, markets will focus more on economic data and less on such incidents.”

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Experts Say Delhi Blast Unlikely to Have Long-Term Impact on Markets

Market experts agreed that the Delhi blast was unlikely to have any meaningful impact on corporate fundamentals or investor sentiment unless the situation escalates significantly.

Kranthi Bathini, Director at WealthMills Securities, said,

“The recent terror attacks are unlikely to have a major impact on corporate operations or profitability unless they trigger a broader geopolitical escalation. Barring that, markets are expected to remain steady and well-balanced.”

Gaurang Shah, Senior Vice President at Geojit Financial Services, noted that investors are watching the investigation’s outcome closely.

“If a Pakistan link emerges, the government response could be similar to Operation Sindoor, since the administration has made it clear it won’t differentiate between state and non-state actors.”

Meanwhile, Ajay Bagga, a veteran market expert, observed that Indian investors have historically shown resilience in the face of such events.

“Domestic investors have lived through the assassinations of two prime ministers, multiple conflicts with Pakistan, and repeated terror attacks. The market’s maturity ensures that such incidents, while tragic, do not derail long-term sentiment.”

Geopolitical Risks Already Priced In, Say Analysts

Experts believe that geopolitical risks are already embedded in Indian market valuations, particularly for foreign institutional investors (FIIs). The current resilience, they say, stems from India’s strong macroeconomic fundamentals, robust domestic liquidity, and sustained participation from retail investors.

Mayuresh Joshi, Director of Research at MarketSmith India, added:

“With FPIs holding short positions of around 1.56 lakh contracts, the market remains cautious yet resilient. Unless the Delhi blast leads to a sharp escalation, it’s unlikely to derail the ongoing positive momentum.”

He added that investors are now focusing on upcoming events such as the US Federal Reserve’s policy meeting and progress on the India-US trade deal, which could provide further direction to the markets.

Delhi Blast: What Happened

On November 10, a high-intensity explosion occurred near the Red Fort metro station in Delhi, killing 13 people and injuring several others. The explosion took place around 7 pm at the Subhash Marg traffic signal, ripping through a slow-moving car and damaging nearby vehicles.

The Delhi Police stated that the car had three occupants, and investigations are underway to determine whether it was a suicide attack. Authorities have registered an FIR under the Unlawful Activities (Prevention) Act (UAPA) and the Explosives Act, while the national capital remains on high alert with tight security at airports, metro stations, and government buildings.

Although the blast shook public sentiment, analysts noted that markets quickly looked beyond the incident, focusing instead on macroeconomic cues and corporate earnings.

Focus Shifts to Economic Data, Fed Event, and Trade Deal Developments

With the initial shock absorbed, investor attention has now turned to global economic developments. The upcoming Federal Reserve event, potential India-US trade agreement, and exit poll expectations are likely to guide short-term sentiment.

The market also found support from stronger foreign inflows, improving liquidity, and bullish momentum in key sectors like IT, auto, and metals.

“Markets have matured significantly. They are focusing on growth indicators, policy direction, and global cues rather than isolated events,” said Bathini.

Nifty Maintains Uptrend, Support at 25,500

On the technical front, the Nifty formed a strong bullish candle with a long lower shadow on daily charts, reflecting sustained buying interest at lower levels. The index has now reclaimed its 20-day exponential moving average (DEMA) at 25,600, suggesting continued positive momentum.

Market experts expect the Nifty to test 26,000–26,100 in the coming week if it sustains above 25,500. However, profit-booking at higher levels cannot be ruled out, given the recent volatility and sensitive geopolitical backdrop.

Conclusion: Markets Stay Calm, Confidence Unshaken

Despite tragic news from Delhi, the Indian equity markets once again proved their resilience and maturity. The recovery from early losses and the closing gains on November 11 underscored investor confidence in India’s long-term growth trajectory.

As the focus returns to macroeconomic data, earnings, and policy updates, Dalal Street appears poised to maintain its uptrend — a testament to the market’s ability to look beyond fear and focus on fundamentals.

• Nifty 50
• Bank Nifty
• Sensex