Sensex, Nifty end higher amid rising India-Pakistan tensions 

Benchmark equity indices closed slightly higher today as investors exercised caution in light of Operation Sindoor—a focused strike by Indian forces targeting terrorist locations in Pakistan following the recent Pahalgam incident.

Focus is also turning toward the outcome of the US Federal Reserve meeting. Market sentiment was volatile amid increasing tensions between India and Pakistan. The Nifty managed to finish above the 24,400 mark after dipping to a low of 24,220 earlier in the session.

In the latest trading session, the S&P BSE Sensex rose 105.71 points, a modest increase of 0.13%, closing at 80,746.78. The Nifty 50 index also saw a positive trend, gaining 34.80 points, or 0.14%, to finish at 24,414.40.

Ajit Mishra – SVP, Research, Religare Broking said, "On the index front, Nifty is attempting to hold the 24,100 level; a breach could lead to further downside towards 23,800. Until then, the index is expected to trade within the 24,100–24,600 range. In the current scenario, traders are advised to adopt a cautious approach and avoid aggressive positions until the market stabilizes."

Notably, the broader market outpaced the major indices, with the S&P BSE Mid-Cap index soaring by 1.36% and the S&P BSE Small-Cap index climbing 1.16%. Overall, the market showed a positive breadth.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services said, "Looking ahead, progress on the U.S.-India trade deal is expected to provide near-term support, especially for export-driven sectors. Key geopolitical developments, corporate earnings reports, and macroeconomic data from the U.S. are likely to be closely watched, with the potential for short-term consolidation depending on how these factors unfold."

The NSE's India VIX, which measures market expectations for volatility in the short term, increased by 0.34%, reaching 19.06.

In terms of sector performance, the Nifty Auto index led with a gain of 1.66%, followed by the Nifty Consumer Durables index at 1.18% and the Nifty Realty index at 1.12%, all outperforming the Nifty 50 index.

On the downside, the Nifty FMCG index fell by 0.52%, and the Nifty Pharma index declined by 0.33%, both trailing behind the Nifty 50 index.