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Benchmark index Sensex fell 1.64 per cent on Thursday, with the big crash coming early afternoon after news broke of India carrying out strikes in the LoC with Pakistan. Market experts wrote in with their views:
Dinesh Thakkar (Chairman & Managing Director, Angel Broking)
“Indian markets saw selling pressure on the news that Indian army conducted surgical strikes on terror launch pads at LoC yesterday. Both S&P Sensex and Nifty corrected more than 2% as soon as official press briefing started. Markets may remain under pressure over uncertainty about geopolitical situation between two countries and take the wait-and-watch approach in the short term. It is pertinent to note that during 1999 Kargil war, markets eventually bounced back with more than 13% gains between the start to the end of the war. In my view, once the current issue also de-escalates, the markets will revert back to its fundamentals which remain strong for India.”
Shreyash Devalkar, Fund Manager – Equities, BNP Paribas Mutual Fund
“Key benchmark indices traded deep in the red today as geo-political tensions grew due to surgical strikes conducted by the Indian army on terror launch pads last night, September 28, 2016 across the Line of Control (LoC) in Pakistan, killing several terrorists and causing significant casualties to their hideouts. The Sensex hit a one-month low and the Nifty hit more than a one-month low in afternoon trade, after witnessing a steep fall. Both the benchmark indices closed the day with losses of more than 1.5%. Overseas stock markets on the other hand traded with some strength as investor sentiment was buoyed by a surge in the oil price after major oil producers agreed to cut production levels. All the sectoral indices on the National Stock Exchange (NSE) traded in negative territory with the metals, healthcare and PSU banks indices losing more than 3% for the day.”
Gautam Duggad, Head - Research, Motilal Oswal Securities Ltd
“Today’s market correction was more to do with the concern about potential escalation of tension at borders. However, given the sharp rally the market has seen in last six months, this event just provided an excuse for correction. F&O expiry also added to the volatility. Correction was severe in mid-cap & small cap stocks where rally has been swift and in some cases defying valuations. We expect the volatility to remain high for next few days, as situation gets clearer on the Indo-Pak front. This, however, is a good opportunity for accumulating select stocks where earnings visibility is high, fundamentals are supportive and only expensive valuations were the concern.”
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