Markets slump on Indian Army's surgical strikes

Indian equity markets slumped in late afternoon session after the Indian Army conducted surgical strikes crossing the Line of Control (LoC) into Pakistan Occupied Kashmir inflicting significant damage to the terrorist infrastructure across the border. The surgical strikes destroyed the launch pads used for infiltration and has resulted in significant casualties.Both the key indices, Sensex and Nifty, plummeted by over one and half a percent. Anxiety among the investors can be seen through India Volatility Index (VIX), which surged by around 33 per cent to a 3-month high of 18.37. Most of the sectoral indices were trading in negative territory with Realty as the top losing indices down by around 5 percent. Selling was broad based with both mid cap and small cap indices were trading down by over a 3 percent.

On the global front, European equities climbed higher on Thursday, with energy shares rallying after oil prices surged overnight following a deal by OPEC members to limit crude output.

The BSE Sensex is currently trading at 27868.22, down by 424.59 points or 1.50% after trading in a range of 27719.92 and 28475.57. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 3.03%, while Small cap index was down by 3.64%.

The losing sectoral indices on the BSE were Realty down by 5.31%, Power down by 3.33%, Metal down by 2.61%, PSU down by 2.39%, Capital Goods down by 2.32%.

The top gainers on the Sensex were Hero MotoCorp up by 0.49%, ONGC up by 0.40%, TCS up by 0.23% and Mahindra & Mahindra up by 0.05%. On the flip side, ICICI Bank down by 4.01%, Adani Ports &Special down by 3.99%, SBI down by 2.84%, Axis Bank down by 2.78% and Sun Pharma down by 2.67% were the top losers.

Meanwhile, in order to accelerate the development of inland water transport sector as an alternative mode of transport in the country, the Inland Waterways Authority of India (IWAI) has signed three separate memorandum of understanding (MoUs) with Dredging Corporation of India (DCI), Mormugao Port Trust (MPT) and Paradip Port Trust (PPT). These MoUs are meant to make use of the synergies, strengths and expertise of the Ports and Dredging sectors as water transport is an alternative, viable and environment friendly mode of transport.

The Shipping Ministry has said that the MoU with DCI will enable IWAI to maintain navigable depth in National Waterways. MoU will also help IWAI to develop National Waterway in Odisha and various National Waterways (NW) in Goa, it ensure development of the fairways, the dredging responsibilities of the IWAI are expected to increase rapidly in the next few years. Under the MoU, DCI will supplement the asset base of IWAI by purchasing/leasing shallow depth dredgers and operating them in National Waterways. DCI will also prepare cost estimates and determine the duration of the dredging projects.

As per the MoU between IWAI and MPT, there will be development of National Waterways like Mandovi, Zuari, Chapora, Mapusa and Sal rivers and Cumbharjua canal. IWAI and MPT will jointly work to achieve fairway development of the 182-Km stretch in Goa which includes dredging, river training works, bank protection, navigation aids, Vessel Traffic Management System (VTMS) etc. MPT will also provide project management supervision services related to the infrastructure works in the national waterways.

The MoU between IWAI and PPT will result in collaboration between IWAI and PPT to develop a viable navigation system on NW-5 in Odisha for Phase-1 to facilitate the movement of cargo vessels of economical size and viable capacity. This will include fairway development of 212 Km stretch. PPT will cooperate and assist IWAI in project management, supervision, services including planning, designing, consultancy in respect of the works related to fairway development, terminals construction and other related infrastructure works on NW-5.

The CNX Nifty is currently trading at 8613.15, down by 132.00 points or 1.51% after trading in a range of 8558.25 and 8800.65. There were 6 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 1.24%, Hero MotoCorp up by 0.65%, TCS up by 0.50%, Mahindra & Mahindra up by 0.35% and ONGC up by 0.34%. On the flip side, BHEL down by 6.12%, ICICI Bank down by 4.20%, Bank of Baroda down by 3.89%, Aurobindo Pharma down by 3.88% and Hindalco down by 3.86% were the top losers.

Asian market were trading in green; FTSE Bursa Malaysia KLCI increased 5.22 points or 0.31% to 1,670.18, Shanghai Composite was moves up by 10.63 points or 0.36% to 2,998.48, KOSPI Index rose 15.66 points or 0.76% to 2,068.72, Jakarta Composite climbed 21.84 points or 0.4% to 5,447.18, Taiwan Weighted jumped 76.38 points or 0.83% to 9,270.90, Hang Seng increased 119.82 points or 0.51% to 23,739.47 and Nikkei 225 surged 228.31 points or 1.39% to 16,693.71.

European markets were trading in green; France’s CAC shined 62.37 points or 1.41% to 4,494.82, UK’s FTSE 100 surged 73.12 points or 1.07% to 6,922.50 and Germany’s DAX increased 105.28 points or 1.01% to 10,543.62.