After a robust seven-day ascent, Indian equity markets experienced a modest decline on Thursday, influenced by heightened geopolitical tensions and mixed corporate earnings. The Nifty 50 index dipped by 0.34% to close at 24,246.7, while the BSE Sensex fell 0.39% to 79,801.43.

Investor sentiment was dampened following a tragic militant attack in Kashmir, which resulted in the deaths of 26 civilians. The incident, marking one of the deadliest in recent years, led to a series of diplomatic measures by India against Pakistan, including the expulsion of Pakistani military attachés and the suspension of key bilateral agreements.

Market analysts noted that the geopolitical developments prompted a risk-off approach among investors. Devarsh Vakil, head of prime research at HDFC Securities, remarked that the escalation in tensions between India and Pakistan contributed to the cautious market behavior.

On the corporate front, earnings reports presented a mixed picture. Hindustan Unilever's shares declined by 4.1% after the company reported quarterly earnings that narrowly missed estimates, citing rising expenses and subdued urban demand. Conversely, Nestle India saw a 3% uptick in its stock price ahead of its earnings announcement, reflecting investor optimism.

Despite the day's downturn, the broader market displayed resilience. Mid-cap and small-cap indices remained relatively stable, and foreign portfolio investors continued their buying streak, providing some support to the market. Analysts suggest that while short-term volatility may persist due to geopolitical factors, underlying economic fundamentals and ongoing foreign investments could offer stability in the longer term.

As the situation evolves, market participants will closely monitor geopolitical developments and corporate earnings for further cues on market direction.