Indian markets flat amid cross-border strikes

Indian benchmark indexes were lackluster on Thursday, with investors considering geopolitical tensions with Pakistan, ongoing worries about inflation, and unemployment risks in the United States.

The Nifty 50 was steady at 24,411.5, while the BSE Sensex was lackluster at 80,776.75 as of 10:26 a.m. IST.

“The major overhang of a significant escalation seems to be in the backburner, as of now. That has also led to a drop in the volatility index,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.

The volatility index (.NIFVIX), also known as the fear gauge, decreased after rising in nine out of the last 10 sessions. This followed a deadly attack by Islamist militants on Hindu tourists in Indian Kashmir last month, resulting in 26 fatalities.

Seven out of the 13 major indexes saw increases. The broader small-cap (.NIFSMCP100) and mid-cap (.NIFMDCP100) indexes both experienced gains of 1.2 per cent and 0.5 per cent, respectively.

India launched missiles at Pakistan and Pakistani Kashmir on Wednesday. Pakistan promised to retaliate, claiming to have shot down five Indian aircraft in the most severe conflict in over two decades between the two nuclear-armed countries.

Attribution: Reuters
Subediting: M. S. Salama