In another day of market stability, India’s key equity indices closed with minimal movement for the second day in a row. The rising volatility index saw a significant increase of 6.5%, reaching a level of 18.49, amid escalating tensions between India and Pakistan following a terror attack in Pahalgam, located in the union territory of Jammu & Kashmir.

Market Overview: Nifty and Sensex Performance

On Wednesday, the Nifty 50 ended the day slightly down, losing 2 points or 0.01% to settle at 24,334.20. Similarly, the BSE Sensex fell by 46 points or 0.06%, wrapping up at 80,242.24.

Rupak De, a Senior Technical Analyst at LKP Securities, noted, “The Nifty is maintaining a narrow trading range as traders choose to stay cautious ahead of the upcoming holiday. However, the index’s position above the critical 20 EMA indicates that the bullish trend is still intact. The momentum remains strong, with the RSI above 50, signaling a bullish crossover.”

Influencing Factors: Domestic and Global Insights

April has seen a healthy performance across the broader market, spurred by reduced tariff uncertainties, a potential trade agreement between the U.S. and India, and robust inflows from Foreign Institutional Investors (FIIs). However, this positive momentum is being stifled by rising geopolitical tensions and subdued Q4 earnings reports, as highlighted by Vinod Nair, Head of Research at Geojit Investments. He remarked, “While the immediate outlook appears bearish, the long-term perspective remains optimistic due to the limited financial repercussions from the ongoing conflict.”

Key Market Highlights

• Indices Flat: The market showed little movement throughout the day, experiencing a brief sell-off just before closing, but managed to recover, finishing with minimal declines.

• Top Gainers: Leading the Nifty 50 was HDFC Life Insurance, which surged by 4.19%. Other notable performers included Maruti Suzuki, SBI Life Insurance, Bharti Airtel, and Sun Pharmaceuticals.

• Top Losers: On the flip side, the Bajaj twins—Bajaj Finserv and Bajaj Finance—were among the biggest decliners. They were joined by Trent, Tata Motors, and State Bank of India.

Sector Performance: Mixed Results

The Nifty Realty sector stood out with a remarkable gain of 1.9%, closing at 885.85. However, the PSU Bank and pharmaceutical sectors dragged down the overall indices, declining by 2.23% and 0.88%, respectively.

The Nifty Bank index fell by 304 points or 0.55%, ending at 55,087, while the BSE Midcap index dropped 310 points or 0.72%, closing at 42,883.72.

Broader Market Sentiment

In broader market dynamics, small-cap and mid-cap stocks ended the day lower, diverging from the prevailing market sentiment.

Market Breadth: A Cautious Outlook

The overall market breadth leaned bearish. From 2,927 stocks traded, only 631 advanced, while 2,228 declined, with 68 remaining unchanged. Out of these, 24 stocks reached new 52-week highs, while 30 hit 52-week lows. Additionally, 37 stocks were at their upper circuit limits, compared to 81 at their lower circuit limits.

In conclusion, while the market has shown resilience amidst geopolitical challenges, investors remain cautious, weighing the immediate risks against a generally positive long-term outlook.