Market Reacts to Geopolitical Tensions

News of India's retaliatory strikes on select Pakistani military assets has left investors jittery, causing the Sensex to dive sharply during the closing hour. The index ended 412 points lower at 80,335 points, while Nifty lost 141 points to close at 24,274 points.

IT and select bank stocks cushioned the fall, according to BSE data. The expiry of weekly derivatives contracts added to the day's volatility, with market players warning of potential turbulence in Friday's session due to escalating Indo-Pak border tensions.

Investor Sentiment and Market Impact

The day's slide left investors poorer by Rs 5 lakh crore, with BSE's market capitalisation now at Rs 418.5 lakh crore. Despite strong foreign fund buying, the market's downturn was evident, with foreign portfolio investors net buyers at Rs 2,008 crore and domestic funds net sellers at Rs 596 crore.

Looking Ahead

Friday's session on Dalal Street could be volatile following Pakistan's drone attack on western Indian places along its border. At 10pm, the GIFT Nifty futures contracts were trading 1.1% lower, signaling cautious investor sentiment.