Indian air strike on Pakistan terror camp jolts markets

 The impact of brewing tension between India and Pakistan post India’s air strike on terrorist camps across the border was felt in the stock market.

Published: 27th February 2019 07:47 AM  |   Last Updated: 27th February 2019 07:47 AM   |  A+A-

Stock markets

Image used for representational purpose only. (File| Reuters)

By Express News Service

NEW DELHI/MUMBAI: The impact of brewing tension between India and Pakistan post India’s air strike on terrorist camps across the border was felt in the stock market. The market reacted negatively with the benchmark BSE Sensex falling nearly 500 points in the early hours of trading. However, as the day progressed, BSE pared some losses to end 239.67 points lower at 35,973.71. BSE had surged 342 points in Monday’s trade.

The 50-share Nifty also fell 44.80 points, or 0.41 per cent, to 10,835.30 after hovering between 10,729.30 and 10,888.75. “Looking at yesterday’s strong close, the probability of surpassing 10,900 today was quite high. But such developments on geopolitical front can spoil the mood. This is exactly what we saw in the opening hour today,” said Sameet Chavan, chief analyst (technical and derivatives), Angel Broking.
Rajnath Yadav, senior research analyst, Fundamental Research Desk Choice Broking, said, “Had this event not happened and with fall in the international crude price, the market would have traded in green. Nevertheless, as the day progressed with no retaliation from Pakistan, market recovered from its lowest position.”

Weak cues from global equities and selling pressure on financial and realty stocks too weighed on market mood.

Chavan said that due to Tuesday’s wild swing, they could see a defined range at least for next couple of days. “On the upside, 10,890 is the level to watch out for as we may see index extending this relief rally towards 10,950-11,000 after surpassing this hurdle. On the flip side, 10,800 followed by 10,729 would now be seen as key support levels. It’s advisable not to trade aggressively if index remains within this range,” he said.

An SBI report said that Balakot air strikes will have no material impact on markets like Kargil and Uri. It also added that US President Donald Trump’s latest tweet on crude oil will have positive impact on oil prices as indicated by past and even data trends. “Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!” Trump had tweeted on Monday.

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