Benchmark equity markets, rupee and bond prices on Tuesday slumped after news reports started suggesting that the Indian Army attacked terrorist camps across the Line of Control (LoC).
Analysts said that in the near term markets would be closely watching developments between India and Pakistan for further cues, however, the long term story remains attractive.
Indian Air Force has reportedly conducted strikes across the LoC against terrorist launch pads. Quoting unnamed sources in the Indian Air Force, ANI said a dozen Mirage-2000 Indian fighter jets dropped 1,000 kg bombs on terror camps across the Line of Control, the de-facto border between the two countries in Kashmir.
At 9.30am, the 30-share Sensex shed 1% or 349.77 points to 35,863.61 points, while National Stock Exchange’s 50-share Nifty dropped 1% or 104.80 points to 10,775.30 points.
The home currency was trading at 71.31, down 0.45% from its previous close of 70.98. It opened at 71.19 a dollar.
The 10-year bond yield was trading at 7.425% from its Monday's close of 7.413%. Bond yields and prices move in opposite directions.
NSE’s Volatility Index or VIX, a measure of near-term market volatility, rose 10% to 15.3575.
All the sectoral indices were in the red. BSE Realty Index and BSE Consumer Durables Index were down 1.1% each. BSE mid-cap and small-cap indices fell 0.8% each.
28 out of 30 Sensex stocks were trading lower. Yes Bank Ltd shed 2.2%, Hero MotoCorp fell 1.7%. Among the gainers, TCS rose 0.9% while HCL Technologies went up 0.7%.