The headline equity indices traded with major losses in mid-afternoon trade, as escalating tensions between India and Pakistan—intensified by the ongoing Operation Sindoor—kept investors on edge. Market sentiment is likely to remain volatile in the near term, driven by uncertainty surrounding geopolitical developments and upcoming U.S. trade policy updates. The Nifty slipped below the 24,000 level.
private bank shares extended losses for the second consecutive trading session.
At 14:26 IST, the barometer index, the S&P BSE Sensex, dropped 982.98 points or 1.22% to 79,355.02. The Nifty 50 index tumbled 291.35 points or 1.20% to 23,982.45.
In the broader market, the S&P BSE Mid-Cap index fell 0.53% and the S&P BSE Small-Cap index dropped 0.93%.
Sellers outnumbered buyers. On the BSE, 933 shares rose and 2,859 shares fell. A total of 153 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 3.92% to 21.83.
India-Pakistan Tensions Escalate:
Amid rising tensions with Pakistan, India has ramped up security in New Delhi by deploying additional forces and intensifying police surveillance. The move follows India’s successful neutralization of multiple Pakistani drone and missile attacks targeting military sites in Jammu, Pathankot, and Udhampur, along with similar threats in 15 other northern and western locations. No casualties were reported.
A major infiltration attempt along the international border in Samba was also foiled. Meanwhile, Pakistan conducted heavy shelling along the Line of Control in Poonch, Rajouri, Uri, and Chowkibal Kupwara, resulting in property damage and the reported death of a woman in Uri. The developments come in the aftermath of the April 22 Pahalgam terror attack, which claimed 26 lives.
Buzzing Index:
The Nifty Private Bank Index dropped 1.49% to 26,752.95. The index fell 1.58% in two consecutive trading sessions.
ICICI Bank (down 3.17%), HDFC Bank (down 1.84%), Axis Bank (down 1.63%), IndusInd Bank (down 1.07%), Bandhan Bank (down 0.70%), IDFC First Bank (down 0.41%), Kotak Mahindra Bank (down 0.36%) and RBL Bank (down 0.12%) declined.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.31% to 6.514 as compared with previous close 6.494.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.5275, compared with its close of 84.5800 during the previous trading session.
MCX Gold futures for 5 June 2025 settlement added 0.01% to Rs 96,176.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.27% to 100.212.
The United States 10-year bond yield lost 0.14% to 4.367.
In the commodities market, Brent crude for July 2025 settlement gained 83 cents, or 1.32% to $63.67 a barrel.
Stocks in Spotlight:
REC advanced 2.21% after the company reported a consolidated net profit rose 5.66% to Rs 4,309.98 crore in Q4 FY25 as against Rs 4,079.09 crore posted in Q4 FY24. Total income stood at Rs 15,348.37 crore in the quarter ended 31 March 2025, up 20.78% from Rs 12,706.66 crore reported in the same period a year ago.
G R Infraprojects declined 1.63%. The company said that it has received the letter of acceptance (LoA) for an engineering, procurement, and construction (EPC) project from the Western Railways worth Rs 262.28 crore.
Venus Pipes & Tubes slipped 2.14%. The company said that it has received LOI from one of India’s leading integrated power plant equipment manufacturers for supplying stainless steel seamless boiler tubes worth Rs 190 crore.