Indian stock markets were largely unchanged on Wednesday, as strength in HDFC Bank cushioned broader indices against rising geopolitical concerns with Pakistan and a sharp drop in Bajaj Finance shares, despite its earnings beat.

By 10:43 a.m. IST, the NSE Nifty 50 inched down 0.05% to 24,324, while the BSE Sensex slipped 0.07% to 80,236.6. Both indices oscillated within a narrow 0.2% range in early trade.

"Geopolitical unease with Pakistan has now overtaken concerns around U.S. tariffs in influencing investor mood," said Anita Gandhi, founder of Arihant Capital Markets.

Tensions have escalated following a deadly attack in Kashmir, prompting Prime Minister Narendra Modi to give military commanders full discretion on India's response. The identification of two Pakistani nationals among the attackers has added to market nerves, despite Pakistan's denial and call for an independent probe.

Volatility has climbed, with the Nifty VIX rising in five of the last six sessions post-attack.

Sector-wise, six of the 13 major indexes slipped. Mid-cap and small-cap stocks underperformed, falling 0.1% and 0.6%, respectively.

Bajaj Finance dropped 5.4%, leading the Nifty laggards. Though the non-banking lender posted a rise in Q4 profit, analysts flagged weak pre-provision operating profit and rising credit costs as key concerns.

HDFC Bank, the Nifty’s largest constituent, climbed 1%, providing some stability to the broader market.

Elsewhere, IndusInd Bank shed 2.5% following the abrupt resignation of its CEO amid fallout from a derivatives accounting issue. Retailer Trent fell 3%, as concerns over slowing same-store sales and high valuations overshadowed stronger profits.

Bucking the trend, Bharat Petroleum gained 2% after reporting a smaller-than-expected decline in its quarterly earnings.