The Bombay Stock Exchange (BSE) was up marginally on Wednesday as traders adopted a cautious approach following Indian military’s “Operation Sindoor” strikes on Pakistan. The Sensex Index was at 80,664 points, having gained 0.03% on the intraday session, defying the war sentiment to register gains of 0.4% in the last five trading sessions.
India struck Pakistan and Pakistan-administered Kashmir region in the early hours of Wednesday, with Pakistan reporting 26 deaths and 46 injuries. In response, Pakistan shelled ponding with shelling of India-administered Kashmir which left 8 people dead. However, the BSE Sensex Index, having been resilient through the two-week conflict, is likely to hold up for as long as the conflict does not escalate to a full-blown war.
Pakistan already closed its airspace to Indian aircraft, while multiple airlines have also cancelled flights through the two nations’ airspaces. That is likely to result in tens of millions of dollars in losses for not only airlines, but also for Indian and Pakistan’s economies.
The two nations have already halted maritime trade between them, suspending the exchange of $500 million worth of goods. In addition, the two nations have already closed Wagah-Attari crossing, the main land crossing point between them. India and Pakistan traded about $1.2 billion worth of goods in 2024, having dropped from $2.41 billion in 2018. That figure is relatively small and could help the Nifty 50 Index and Sensex Index stay afloat as exposure of the BSE and NSE equities remain relatively negligible.
Sensex Index Prediction
The Sensex Index pivots at 80,342 points and the upside will prevail if action stays above that level. The momentum will likely meet initial resistance at 80,915. However, an extended control by the buyers will break above that level and test 80,695 points.
On the other hand, going below 80,342 will signal the onset of bearishness. In that case, the first support will likely be at 79,660. Breaking below that level will invalidate the upside narrative. Also, it could clear the path for an extended decline to test 79,000.
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