Opening Bell | Operation Sindoor Sparks Volatility: BSE Sensex, NSE Nifty50 Slip Amid Geopolitical Heat

Indian stock markets opened lower on Tuesday, May 7, following a dramatic overnight development in national security.

Just hours after India launched precision airstrikes under ‘Operation Sindoor’, targeting nine terror camps across Pakistan and Pakistan-occupied Kashmir (PoK), domestic equities reflected early jitters, though experts believe the move may eventually be seen as a “positive trigger.”

Opening Bell today
At the opening bell, the Sensex fell 79.95 points or 0.10% to 80,561.12, and the Nifty was down 14.55 points or 0.06% to 24,365.05. Market breadth was negative with 676 shares advancing, 1,649 declining, and 99 remaining unchanged.

'Operation Sindoor'
India’s military operation came in retaliation to the April 22 terror attack in Pahalgam, Jammu and Kashmir, where 26 Indian tourists were killed by Pakistan-backed terrorists.

In a late-night aerial assault, the Indian Air Force targeted terror camps linked to Lashkar-e-Taiba, Jaish-e-Mohammed, and Hizbul Mujahideen, according to government sources.
While the action is seen as a bold geopolitical statement, the markets remain cautious amid reports of retaliatory moves from Pakistan.

“The market will view it as a positive thing because this was due for some time…a befitting reply to the Pahalgam attacks. Yet, there could be a minor volatile move in today’s trading session,” said Sugandha Sachdeva, Founder of SS WealthStreet.

She added, “In terms of the key levels, we see near-term support at 24,200. If that holds, we are likely to see a renewed wave of buying. If it breaks, the index may slip towards 23,850.”

Top Gainers and Losers
On the Nifty 50, major gainers included Tata Motors, Shriram Finance, Apollo Hospitals, Bajaj Finance, and Hindalco. On the flip side, Asian Paints, Titan Company, TCS, L&T, and Tech Mahindra were among the top losers.

Tuesday’s Recap: Markets Fell Ahead of the Strike
Even before the official announcement of Operation Sindoor, markets had closed lower on May 6.
BSE Sensex dropped 155.77 points or 0.19% to 80,641.07
Nifty 50 declined 81.55 points or 0.33% to 24,379.60
Only 16 Nifty stocks advanced, while 34 declined

“Nifty closed below 24,400 with a 0.33% dip and has been forming lower highs—signaling weakening momentum,” noted Sudeep Shah, Deputy VP & Head of Technical & Derivatives Research at SBI Securities.

He warned of a potential bearish crossover on the daily RSI, adding that the 24,470–24,500 zone remains a critical hurdle. “A breakout could push Nifty to 24,650–24,800, while the downside supports lie at 24,260–24,070,” he said.

On the Sensex, Shah said: “Support lies at 80,400–80,300, while 80,800–80,900 remains the key hurdle.”
 

All Eyes on the Fed: Will Powell Hint at a Rate Cut?
Apart from geopolitical tensions, the market is keeping a close watch on the US Federal Reserve meeting scheduled later today.

“We do not expect a rate cut, but yes, the tone of the Fed chair is going to be very important—especially with Trump pressurising the Fed chair to cut rates,” said Sachdeva. “A hint of a rate cut could be a positive trigger, weighing on the dollar index and favouring Indian assets.”

Global Markets: Mixed Cues, China Stimulus in Focus
While US markets ended lower on Tuesday, international cues remain mixed. Dow Jones fell 0.95%, S&P 500 slipped 0.77%, and Nasdaq declined 0.88% due to persistent trade worries.

“All three major US indices closed lower on Tuesday as lingering trade concerns overshadowed recent gains. The Dow shed 0.95%, the S&P 500 slipped 0.77%, and the Nasdaq fell 0.88%,” said Shah.

However, reports of a US-China trade summit in Switzerland and China’s announcement of fresh stimulus (including rate cuts and reserve ratio reduction) provided some relief to global markets.

India-UK Trade Pact: A Tailwind for Exporters
Adding to domestic optimism, India has reportedly signed a trade agreement with the UK. The deal is expected to benefit export-oriented sectors, potentially providing a support cushion in the days ahead.

Crude Oil and Dollar Movement: Watching the Trend
Brent Crude saw a rebound, ending Tuesday at $61.92, up 2.89%. According to Shah, immediate support lies at $60.20–60, with resistance at $62.70–63.

Meanwhile, the US Dollar Index slipped for the second day in a row. Shah said: “The 100.40–100.60 zone is an immediate hurdle, while 99–98.80 will serve as crucial support.”

In case there is a hint of a rate cut, that is going to be a positive trigger and that could weigh further on the dollar index and would favor the Indian assets,’ Sachdeva said.
 

Read More 
Operation Sindoor: Will Stock Market BSE Sensex, Nifty50 Fall Today?

FII-DII Data: Foreign Inflows Continue
As per Shah, Foreign Institutional Investors (FIIs) remained net buyers, while Domestic Institutional Investors (DIIs) booked profits.
FII/DII Data (May 6):
FIIs: Net buyers of Rs 3,794.52 crore
DIIs: Net sellers of Rs 1,397.68 crore
FIIs bought 2,222 index futures, sold 2,804 stock futures, bought 40,525 call options, and 90,159 put options
FIIs’ long-short ratio on index futures stood at 49.23

Stock Market Outook for today: Volatile But Constructive
While the opening bell marked a cautious start, analysts believe the strategic action under Operation Sindoor may eventually boost market confidence if escalation is avoided. Coupled with global liquidity cues, trade pacts, and central bank guidance, the markets may find support, but volatility will be the theme of the day.