Indian Markets Bounce Back After Operation Sindoor Strikes

Indian stock and forex markets displayed resilience after India's multi-service Operation Sindoor strikes on terror camps in Pakistan and Pakistan-occupied Kashmir. While benchmark indices like Sensex and Nifty initially fell on investor caution, they quickly rebounded due to strong domestic macroeconomic fundamentals, robust GDP growth expectations, and ongoing foreign institutional investor inflows. Experts attribute the market's composure to India's targeted, non-escalatory military response, which was largely anticipated. Defense stocks gained amid broader index declines, while mid- and small-cap stocks underperformed. The rupee's movement remained in line with other Asian currencies, and volatility expectations were unchanged. Analysts advise vigilance but stress that India's long-term outlook remains strong unless the conflict escalates.