Indian markets declined sharply today after the Army said it had conducted surgical strikes against terrorists across the Line of Control on Wednesday night that caused lot of casualities and damage.
The Sensex went down as much as 572 points at day’s low before closing at 27,827, down 465 points. Nifty ended at 8,591, down 153 points. The rupee also declined by 46 paise to 66.91 against the US dollar at day’s low in its biggest intra-day plunge since Brexit vote in June.
India Volatility Index, referred to “fear gauge”, jumped 33 per cent to a seven-month high of 18.45, reflecting nervousness among market participants.
“The markets reacted to news of surgical strikes,” said Ashtosh Raina, head of foreign-exchange trading at HDFC Bank. “Any tension is definitely going to hurt sentiment.”
Dipan Mehta, a member of BSE & NSE, said: “An element of uncertainty has crept into the market. Foreign investors will also view this as an additional risk premium for putting their money into Indian market.”
Anil Manghnani of Modern Shares and Stock Broker said 8,500 is very crucial support level for Nifty and any close below this level will trigger more downside.
