Indian equities are set for a cautious to negative start on Wednesday as markets digest the geopolitical repercussions of Operation Sindoor, under which Indian Armed Forces conducted precision strikes on terror infrastructure in Pakistan and PoJK. The government has termed the mission “measured and non-escalatory”, but investors are expected to stay on edge until more clarity emerges from the Ministry of Defence’s scheduled 10 AM press briefing.
As of 7:03 am IST, GIFT Nifty futures were trading 104 points lower at 24,308, hinting at a gap-down opening for benchmark indices amid heightened geopolitical risks.
Operation Sindoor: Nine targets hit in overnight strike
The Indian Army, Navy, and Air Force jointly carried out strikes on nine terror hubs in key Pakistani cities like Bahawalpur, Muridke, and Sialkot, as well as across Pakistan-occupied Kashmir (PoK). The strikes were reportedly in retaliation to the Pahalgam terror attack, which killed 25 Indian civilians and one Nepali.
The Defence Ministry stated “Our actions have been focused, measured and non-escalatory. No Pakistani military facilities were targeted.”
The Armed Forces employed precision-guided munitions and high-level coordination to neutralize camps used for plotting attacks against Indian interests.
Global markets steady, but India-specific risk looms
Globally, equity markets remained largely stable with no significant risk-off moves, though Indian markets may witness India-specific volatility. US indices ended mixed overnight, with the Dow and S&P 500 registering modest gains, while Asian markets opened flat to mildly positive. However, geopolitical risk premium is expected to weigh on Indian assets.
Rupee watch and FII-DII flows
The rupee movement will be key to watch today. On Tuesday, it had strengthened to 84.30 against the US dollar. Any sharp depreciation today could reflect investor nervousness following the cross-border military action.
On the institutional front, FPIs were net buyers at Rs 498 crore on Monday, while DIIs added Rs 2,789 crore. Today’s flows will depend heavily on post-strike global reactions and MoD’s 10 AM update.
Technical view: Nifty vulnerable below 24,300
Technically, Nifty faces critical support at 24,250–24,200. A breach could open room for deeper downside. Traders are advised to remain cautious, avoid aggressive longs, and wait for the situation to stabilise. Upside momentum will only resume if Nifty sustains above 24,600.
