India’s equity benchmarks set to open flat amid escalating geopolitical tensions

India’s benchmark equity indexes are set to open flat on Wednesday as caution due to escalating geopolitical tensions with Pakistan is set to offset the impact of signs of progress in the U.S. trade negotiations.

Gift Nifty futures were trading at 24,323.5 as of 8:10 a.m. IST, indicating the Nifty 50 will open near Tuesday’s close of 24,335.95.

Other Asian markets inched higher at the open, with the MSCI Asia ex-Japan index adding 0.2%. Overnight, Wall Street equities logged modest gains.

Despite the easing trade worries, volatility is expected to stay elevated due to ongoing geopolitical tensions between India and Pakistan, according to Bajaj Broking Research.

Indian Prime Minister Narendra Modi granted military chiefs freedom to respond to the attack, Reuters reported on Tuesday, citing a source.

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Pakistan’s information minister Attaullah Tarar said on Wednesday that the country has credible intelligence that India intends to launch a military strike within the next 24 to 36 hours.

India and U.S. have signalled progress in bilateral trade talks with a deal expected to be sealed by this week or the next.

U.S. Treasury Secretary Scott Bessent said on Tuesday he did not expect supply chain disruption from trade disputes.

The Nifty volatility index has risen in four of the five sessions since last week’s deadly militant attack on tourists in Kashmir.

Among individual stocks, private lender IndusInd Bank will be in focus as its CEO Sumant Kathpalia resigned with immediate effect on Tuesday, marking a management shakeup following a derivatives accounting lapse that has hit the lender’s net worth.