India’s cross-LoC surgical strikes hit equity markets

India’s cross-LoC surgical strikes hit equity markets


After a positive opening on the back of a rise in global crude oil prices, key Indian equity indices took a sharp fall around 12:30 p.m. on Thursday, after the army said it had conducted surgical strikes on terror camps across the Line of Control in Jammu and Kashmir, inflicting “significant casualties”.
A roller-coaster ride thereafter also saw some indices recovering, albeit marginally, but only to fall again and close significantly lower. The market movement was similar in Pakistan.

The barometer 30-scrip sensitive index (Sensex) of the BSE opened strong at 28,423.14 points on Thursday, against the previous close at 28,292.81 points. By the time the news briefing by the Indian Army had ended, the intra-day fall was as much as 750 points.

After a subsequent volatile session, where some investors were also resorting to value buying amid overall concern over escalation in tension between India and Pakistan, the key index ended with a loss of 465.28 points, or a 1.64 per cent drop, at 27,827.53 points.

But for Tata Consultancy Services, all the 30 Sensex shares ended in the red.

“As markets got first whiff of developments across the border, panic liquidation gripped the stocks enmasse resulting in a sell off across board. However F&O expiry dynamics ensured that liquidation spree did not evolve into a free fall,” said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

At the Karachi Stock Exchange, the movement for KSE-30 was similar. The index, at one point of time, was down over 415 points. But half hour before the closing bell, it was ruling with a loss of 20.31 points, or 0.09 per cent.

India’s National Stock Exchange (NSE) closed lower by 153.90 points, or 1.76 per cent, to 8,591.25 points.

The market mood took a beating as soon as the briefing by the Indian Army started.

“India cannot allow terrorists to operate across the LoC (Line of Control) and strike with impunity,” Director General of Military Operations Lt Gen Ranbir Singh told a hurriedly called press briefing in New Delhi, soon after a meeting of the Cabinet Committee on Security.

“The strikes were carried out based on specific and credible information,” he said.


Hits: 484

Leave a comment

India's cross-LoC surgical strikes hit equity markets | NORTH INDIA KALEIDOSCOPE

Rajesh Ahuja

I am a veteran journalist based in Chandigarh India.I joined the profession in June 1982 and worked as a Staff Reporter with the National Herald at Delhi till June 1986. I joined The Hindu at Delhi in 1986 as a Staff Reporter and was promoted as Special Correspondent in 1993 and transferred to Chandigarh. I left The Hindu in September 2012 and launched my own newspaper ventures including this news portal and a weekly newspaper NORTH INDIA KALEIDOSCOPE (currently temporarily suspended).