Indian stocks traded in a narrow range on Wednesday morning as investors navigated concerns over escalating military tensions with Pakistan. However, optimism surrounding U.S.-China trade talks provided some support for the market.
By 09:44 IST (04:14 GMT), the Nifty 50 benchmark had gained 0.1%, reaching 24,508.0 points, while the BSE Sensex 30 rose 0.2%, hitting 80,782.40 points. Both indexes opened lower, although Gift Nifty 50 Futures had initially indicated a positive start.
Earlier in the day, India launched strikes on nine alleged terrorist targets in Pakistan. The strikes were a response to a deadly attack in Indian Kashmir in April. Pakistan condemned the action and retaliated with artillery fire along the Kashmir border. The country also claimed to have shot down at least three Indian planes. This marked the most intense military confrontation between the two nuclear-armed nations in decades, raising concerns among investors about the potential for further escalation.
Despite these concerns, Indian shares were buoyed by news of upcoming U.S.-China trade talks. U.S. and Chinese officials are set to meet in Switzerland later this week for negotiations, offering hope for a resolution to trade tensions between the two countries. This development also helped lift broader Asian markets.
Tata Motors Ltd (NSE: TAMO) (NYSE: TTM) emerged as one of the biggest gainers, rising nearly 3%. The company’s stock surged after shareholders approved a plan to split the company into two separate listed entities, making it the top performer on the Nifty.
In summary, while geopolitical tensions weighed on investor sentiment, positive news from international trade talks and corporate developments helped limit losses in Indian stocks.
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