Daijiworld Media Network- New Delhi

New Delhi, May 7: Indian stock markets are likely to witness a subdued opening on Wednesday, as investor sentiment turns cautious following India’s targeted anti-terror strikes on terror camps in Pakistan and Pakistan-occupied Kashmir (PoK).

According to early indicators, the GIFT Nifty index was down 0.27%, pointing to a weaker start for the Nifty 50 on the National Stock Exchange.

Market analyst and banking expert Ajay Bagga noted that the heightened geopolitical risk has now become a tangible factor.

“The geopolitical risk that was hanging over the Indian markets has got crystallised today with the Indian strikes. Markets are expected to open with a negative gap, much like after the Uri and Balakot strikes,” Bagga told ANI.

He further added that the future trajectory of the markets depends heavily on how the geopolitical situation unfolds.

“If the situation escalates, we could see increased selling pressure. But if the tensions remain contained, markets may stabilise gradually,” Bagga stated.

Meanwhile, broader Asian markets showed mixed cues.

• Hong Kong’s Hang Seng jumped 1.66%

• South Korea’s KOSPI climbed 0.49%

• Taiwan’s index stayed marginally in the green

• Japan’s Nikkei 225, however, slipped 0.09%

Indian markets had already reflected some nervousness on Tuesday, closing in the red amid profit-booking and uncertainty over geopolitical developments.

The BSE Sensex ended down 155.77 points at 80,641.07, while the Nifty 50 shed 81.55 points to close at 24,379.60.

Analysts suggest that investors will closely monitor the situation between India and Pakistan over the coming days, with any signs of escalation likely to trigger volatility and selling pressure across sectors.