Indian stock markets crash after DGMO’s claim about surgical strikes at LoC

Indian stock market dived as benchmark indices have wiped off all gains and are trading near day’s low after the Indian Army claimed it conducted surgical strikes across LoC in Pakistan, a claimed outrightly rejected by Pakistan.

UR Bhat, managing director, Dalton Capital Advisors said the impact on markets will depend on how the matter plays out, Business Standard reported.

“Further impact on the market will depend on the extent of escalation. As of now the market has reacted to the limited information that has been made available. I don’t think the matter should escalate too much and the market should be able to stabilise,”said Bhat.

The stock markets in Pakistan were unperturbed by the border skirmish. The KSE100 Index was up more than a per cent.

India’s rupee fell 0.6 percent to 66.8850 per dollar as of 1:10 p.m. in Mumbai, halting a five-day gain. The benchmark S&P BSE Sensex dropped 1.2 percent. Pakistan’s benchmark equity gauge pared gains to 0.3 percent from as much as 1.3 percent earlier Thursday. “This will create some short term jitters in the market,” said Abhimanyu

The benchmark S&P BSE Sensex dropped 1.2 percent. Pakistan’s benchmark equity gauge pared gains to 0.3 percent from as much as 1.3 percent earlier Thursday. “This will create some short term jitters in the market,” said Abhimanyu

“This will create some short term jitters in the market,” said Abhimanyu Sofat, vice president at brokerage India Infoline Ltd. in Mumbai. “Investors are selling amid uncertainty on the extent or duration of the actions. If Pakistan does not retaliate then it’s just an event else a major sell-off will be seen.” ns

“Investors are selling amid uncertainty on the extent or duration of the actions. If Pakistan does not retaliate then it’s just an event else a major sell-off will be seen,” Sofat added.