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Stock market opens in green amid India-Pakistan border tensions
The situation at the India-Pakistan border remains the key concern for the market participants.
The stock market opened on a positive note on Monday amid ongoing border tensions between India and Pakistan.
The Bombay Stock Exchange (BSE) benchmark Sensex soared by 456.05 points to 79,668.58 in early trade. On the other hand, the NSE Nifty rallied 112.85 points to 24,152.30.
The situation at the India-Pakistan border remains the key concern for the market participants.
Ajay Bagga Banking and Market Expert told ANI, "FPI flows are continuing to support Indian markets along with continued DII flows. With no major OFS or IPOs absorbing liquidity, markets are benefiting from these flows. However, last week we saw falls in both leading and broader indices in India. This was despite positive numbers from both FPIs and DIIs. This points to outflows from prop desks and HNI segments on the back of the heightened geopolitical tensions on the Indian subcontinent".
Sensex, Nifty declined sharply on Friday
On Friday, both Sensex and Nifty declined sharply due to selling in Axis Bank and the ongoing border tensions following the Pahalgam terror attack.
The BSE barometer tanked 588.90 points or 0.74 per cent to settle at 79,212.53. During the day, it dropped 1,195.62 points or 1.49 per cent to 78,605.81.
Falling for the second day, the NSE Nifty tumbled 207.35 points or 0.86 per cent to 24,039.35.
Experts said worries over growing geopolitical tensions after Tuesday's Pahalgam terror attack weighed on market sentiment.
All sectoral indices except for IT index closed in the red while midcap and smallcap indices dropped more than 2 per cent due to profit taking.
"Investor sentiment turned cautious amid escalating tensions along the Indo-Pak border. Mid and smallcap stocks bore the brunt of the sell-off, driven by their elevated valuations and growing concerns over potential earnings downgrades following a muted start to the earnings season," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Among Sensex shares, Adani Ports, Axis Bank, Eternal, Bajaj Finserv, Power Grid, Maruti, Bajaj Finance, Tata Motors, Tata Steel and NTPC were the biggest laggards.
