Early Session Mixed as Market Grapples With India-Pakistan Tensions
India’s stock markets opened to mixed cues on Thursday, reflecting the broader global uncertainty and rising geopolitical tensions in South Asia. The BSE Sensex slipped marginally by 53.17 points, or 0.07 percent, to 80,693.61 after opening higher at 80,912.34. Similarly, the NSE Nifty lost 31.15 points, or 0.13 percent, to trade at 24,383.25 after opening at 24,431.50. The cautious opening was largely attributed to India’s pre-dawn military operation targeting nine terror camps across the border in Pakistan—a development that injected volatility into financial markets despite the measured reaction from investors.
Investor sentiment remained broadly steady due to sustained inflows from Foreign Institutional Investors (FIIs), which have continued unabated for 15 consecutive sessions. On Wednesday alone, FIIs injected over ₹2,500 crore into Indian equities, bringing the total for the past four sessions to nearly ₹10,000 crore. These strong inflows have provided a cushion against geopolitical concerns, helping the benchmark indices to stabilize.
Highlights:
Sensex opened at 80,912.34 before slipping to 80,693.61.
Nifty hovered above the 24,400 mark, despite falling from its high.
India’s military action in Pakistan weighed on market sentiment.
FIIs continue a 15-session buying streak, infusing ₹10,000 crore over 4 days.
FMCG, Pharma, and Metal Stocks Under Pressure
Amid the broader market turbulence, sectoral performance remained highly uneven. The FMCG, metal, and pharmaceutical sectors were the most adversely affected during Thursday’s session. The Nifty FMCG index recorded a drop, weighed down by disappointing quarterly results from Dabur India, whose shares fell 4 percent after reporting weaker-than-expected earnings. Pharma stocks also struggled, with investors opting to book profits after a strong run over the past month. Meanwhile, the metal index was subdued due to weak cues from global commodity prices and tepid Chinese demand data.
In contrast, the auto sector managed to stay afloat, and the banking and media sectors posted modest gains of 0.5 to 1 percent, offering partial relief to the broader indices. Auto stocks outperformed, with Tata Motors among the top gainers as strong delivery data and positive management commentary helped buoy sentiment.
Highlights:
FMCG sector led the laggards, dragged down by Dabur’s 4% decline.
Pharma and metal indices saw sustained selling amid global headwinds.
Auto, bank, and media stocks saw 0.5–1% gains, led by Tata Motors.
Broader Market Outperforms as Mid and Small Caps Rally
While benchmark indices traded within a narrow range, the broader market outperformed notably. The BSE Midcap index rose by 0.5 percent, while the BSE Smallcap index surged 1 percent, driven by renewed retail interest and improved earnings visibility in select companies. These gains underscore the prevailing bullish sentiment in the broader market, even as frontline indices waver due to macro-level concerns.
Among the most active shares on the National Stock Exchange (NSE) were BSE Limited, HDFC Bank, Kotak Mahindra Bank, Tata Motors, and Mazagon Dock Shipbuilders. Several of these counters saw strong trading volumes, buoyed by quarterly results and sector-specific tailwinds.
Highlights:
BSE Midcap index up 0.5%; Smallcap index up 1%.
Retail participation and stock-specific buying lifted broader indices.
Mazagon Dock, Tata Motors, and BSE Limited among top NSE gainers.
Stock-Specific Action: Voltas and Tata Chemicals Advance, Gensol Dips
In stock-specific developments, Voltas shares surged more than 3 percent after the company posted a sharp jump in net profit for Q4FY25, with earnings doubling to ₹241 crore on a sequential basis. The performance beat street estimates and was supported by strong order inflows and robust margin expansion.
Tata Chemicals saw a 2 percent uptick after it reported a narrowed net loss of ₹56 crore for the fourth quarter, a significant improvement from previous quarters. The company’s management reiterated its focus on cost rationalization and export growth, which helped support the stock.
On the downside, Gensol Engineering plunged 5 percent after the Securities Appellate Tribunal (SAT) denied interim relief in an ongoing regulatory matter. The negative legal development triggered selling pressure, leading to a sharp decline in the stock price.
Highlights:
Voltas up 3% after net profit doubles to ₹241 crore in Q4.
Tata Chemicals gains 2% after net loss narrows to ₹56 crore.
Gensol Engineering slips 5% after SAT refuses interim relief.
Global Cues Mixed as Traders Await Central Bank Signals
Global markets offered a mixed bag on Thursday as investors awaited further clarity from central banks, particularly the US Federal Reserve and the European Central Bank, on their interest rate trajectories. S&P 500 futures climbed 0.4 percent in early Tokyo trade, reflecting some optimism in the US markets. However, Asia-Pacific indices remained under pressure.
Japan’s Topix declined 0.2 percent, while the Hang Seng futures fell 0.6 percent as Chinese economic concerns persisted. Australia’s S&P/ASX 200 index remained largely unchanged amid commodity price volatility. In Europe, futures on the Euro Stoxx 50 edged up 0.4 percent, hinting at a steady open.
These international developments are being closely tracked by Indian investors, especially those with exposure to global-facing sectors such as IT and metals. Additionally, the trajectory of the US-India trade agreement under discussion is expected to impact export-driven firms.
Highlights:
S&P 500 futures up 0.4%; Euro Stoxx 50 futures also gain 0.4%.
Hang Seng and Topix indices retreat amid China slowdown concerns.
Global volatility continues to influence Indian equities via FII sentiment.
