Indian shares were muted on Wednesday as gains in heavyweight HDFC Bank helped offset pressure from tensions with Pakistan, while Bajaj Finance declined despite posting a rise in fourth-quarter profit.
The Nifty 50 was down 0.05% at 24,324 and the BSE Sensex lost 0.07% to 80,236.6 as of 10:43 a.m. IST. Both benchmarks swung between 0.2% gains and 0.2% losses in early trade.
“For now, geopolitical tensions (with Pakistan) have overtaken (U.S.) tariffs in investors’ minds,” said Anita Gandhi, founder and head of institutional business at Arihant Capital Markets.
Indian Prime Minister Narendra Modi granted military chiefs freedom to respond to last week’s deadly militant attack in the Indian-occupied Kashmir, Reuters reported on Tuesday.
India has blamed Pakistan for the deadly assault in a tourist resort in the occupied region which left 26 people dead last week. Islamabad has denied any role and called for a neutral investigation.
The Nifty volatility index has risen in five of the six sessions since the attack in occupied Kashmir. Six of the 13 major sectors declined on Wednesday, while the small- and mid-caps fell 0.6% and 0.1%, respectively.
Non-bank lender Bajaj Finance fell 5.4%, leading losses on the Nifty, despite posting a higher quarterly profit, as brokerages flagged weak pre-provision profit and higher credit costs as negatives.
However, HDFC Bank, the heaviest stock on the Nifty, rose 1%, lending support to the benchmarks.
Among stocks, IndusInd Bank fell 2.5% after its CEO resigned with immediate effect on Tuesday, in a management shakeup triggered by derivatives accounting lapses that have hit the lender’s net worth.
Apparel retailer Trent lost 3% despite reporting higher March-quarter profit.
While Trent’s profit rose, the tapering of same-store sales growth and costly valuations make the stock unattractive at current levels, PhillipCapital said in a note.
Oil marketing company Bharat Petroleum Corp rose 2% after posting a smaller-than-expected fall in quarterly profit.
