Mumbai: Reversing a positive trend in the morning, Indian markets fell sharply after the Army on Thursday said it had conducted surgical strikes against terrorists across the Line of Control on Wednesday night.
The Sensex fell as much as 572 points to 27,719 while the Nifty slumped to 8,558 after the Army’s announcement. At the day’s high, the Sensex had risen over 180 points before the slump.
The rupee also fell by 36 paise to 66.82 against the US dollar, tracking weakness in Indian stock markets.
India Volatility Index, referred to ” fear gauge”, jumped 33 per cent to a 3-month high of 18.37, reflecting nervousness among market participants.
The Army has carried out “surgical strikes” yesterday to prevent Pakistani terrorists who had “positioned themselves at launch pads along the Line of Control with aim to carry out strikes in Jammu and Kashmir and other metros,” the army said today.
The strikes the Army spoke of today are the first major military action taken by India at the Line of Control after terrorists from Pakistan crossed into an army camp in Uri in Kashmir earlier this month. 18 soldiers were killed in that attack. Prime Minister Narendra Modi has pledged that the attack will not go unpunished.
At 1 p.m., the Sensex was down 417 points at 27,875 while Nifty fell 135 points to 8,609. 47 stocks out of 51 stocks in the Nifty index traded in the red.