Tuesday, 02 January 2024 12:17 GMT

Investors Lose Rs 7 Lakh Crore In 2 Days As Markets Tumble Amid India-Pak Conflict


(MENAFN- Kashmir Observer) New Delhi – Investors' wealth eroded by Rs 7 lakh crore in two days as stock markets became jittery following the escalation of the India-Pakistan conflict.

India on Thursday night swiftly thwarted Pakistan's fresh attempts to strike military sites with drones and missiles, including in Jammu and Pathankot, after foiling similar bids at 15 places in northern and western regions of the country as tensions soared between the two countries.

Extending its previous day's decline, the 30-share BSE benchmark gauge Sensex tanked 880.34 points, or 1.10 per cent, to settle at 79,454.47, in a largely range-bound trading.

The NSE Nifty dropped 265.80 points, or 1.10 per cent, to 24,008.

In two days, the BSE benchmark tumbled 1,292.31 points, or 1.60 per cent.

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The market capitalisation of BSE-listed firms eroded Rs 7,09,783.32 crore to Rs 4,16,40,850.46 crore (USD 4.86 trillion) in two days.

“Domestic factors continued to weigh on Indian markets even as global indices stayed firm, as rising tension due to Indo-Pak conflict prompted investors to flee local equities,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

From the Sensex firms, ICICI Bank, Power Grid, UltraTech Cement, Bajaj Finance, HDFC Bank, Reliance Industries, Bajaj Finserv, Adani Ports, ITC, and Mahindra & Mahindra were among the laggards.

Titan Company, Tata Motors, Larsen & Toubro and State Bank of India were the gainers.

The BSE smallcap gauge declined 0.30 per cent, and the midcap index dipped 0.10 per cent.

Among sectoral indices, realty tanked 2.08 per cent, utilities (1.50 per cent), financial services (1.40 per cent), power (1.11 per cent), bankex (1.04 per cent), FMCG (0.65 per cent), and services (0.63 per cent).

Capital goods jumped 1.67 per cent, industrials (1.10 per cent), consumer durables (1.29 per cent) and metal (0.17 per cent).

“A conflict was anticipated but the market was not expecting the situation to intensify, raising concerns about its duration. However, it is still projected to be a short-lived confrontation, given the strategic advantage and the opponent's weak economic standing.

“Interestingly, Foreign Institutional Investors (FIIs) continued to invest in the Indian market until yesterday (Thursday), while retail investors remain slightly cautious at the moment,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

As many as 2,522 stocks declined while 1,343 advanced and 145 remained unchanged on the BSE on Friday.

Markets tumble as India-Pakistan conflict flares up; Sensex, Nifty tank over 1%

Stock market benchmark indices Sensex and Nifty tumbled over 1 per cent each on Friday as tensions soared between India and Pakistan, fuelling fears of a wider conflict.

Extending its previous day's decline, the 30-share BSE benchmark gauge tanked 880.34 points or 1.10 per cent to settle at 79,454.47, in a largely range-bound trading.

The NSE Nifty dropped 265.80 points or 1.10 per cent to 24,008.

India on Thursday night swiftly thwarted Pakistan's fresh attempts to strike military sites with drones and missiles, including in Jammu and Pathankot, after foiling similar bids at 15 places in northern and western regions of the country as tensions soared between the two countries.

The Indian armed forces on Wednesday had carried out precise missile strikes on nine terror targets in Pakistan-occupied Kashmir (PoK) and Pakistan under 'Operation Sindoor'.

“A conflict was anticipated, but the market was not expecting the situation to intensify, raising concerns about its duration. However, it is still projected to be a short-lived confrontation, given the strategic advantage and the opponent's weak economic standing.

“Interestingly, Foreign Institutional Investors (FIIs) continued to invest in the Indian market until yesterday, while retail investors remain slightly cautious at the moment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

From the Sensex firms, ICICI Bank, Power Grid, UltraTech Cement, Bajaj Finance, HDFC Bank, Reliance Industries, Bajaj Finserv, Adani Ports, Mahindra & Mahindra and NTPC were among the laggards.

Titan Company climbed over 4 per cent higher after the Tata group firm reported a 13 per cent increase in its consolidated profit after tax at Rs 871 crore in the March quarter, driven by robust sales.

Larsen & Toubro jumped nearly 4 per cent after the firm reported a 25 per cent increase in consolidated profit after tax (PAT) to Rs 5,497 crore for the quarter ended March 31, supported by higher revenues and an exceptional gain.

Tata Motors, State Bank of India and Asian Paints were among the gainers.

Foreign Institutional Investors (FIIs) bought equities worth Rs 2,007.96 crore on Thursday, according to exchange data.

In Asian markets, South Korea's Kospi and Shanghai's SSE Composite index settled lower, while Japan's Nikkei 225 index and Hong Kong's Hang Seng ended in the green.

European markets were trading higher. US markets ended in positive territory on Thursday.

Global oil benchmark Brent crude climbed 1.53 per cent to $63.80 a barrel.

On Thursday, the BSE Sensex declined by 411.97 points or 0.51 per cent to settle at 80,334.81. The Nifty ended lower by 140.60 points or 0.58 per cent at 24,273.80.


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