Domestic equity markets plunged deep into the red in early noon trades, after news reports showed that Indian army conducted surgical strikes on terror camps across the border with Pakistan.
As news started trickling in about the limited strike undertaken at the terror camp across the border, markets turned shaky and investors exited stocks in hordes, resulting in the Sensex crashing 573 points to touch the day's low of 27.719.92.
At 1:30 pm, the 30-share benchmark Sensex managed to trim some losses, and was at 28,018.28, down 274.53 points, or nearly a percent from previous close. Although, the markets snapped three session fall a day before, the index has lost nearly 500 points in last three out of four trading sessions.
However, the barometer index was ruling strong in early trades, surging 185 points after decision to undertake production cuts by oil producing nations buoyed sentiment across the region and oil prices moved up sharply.
The broader 50-stock Nifty was at 8,653.70, down 91.45 points or 1.05 percent. In fact, Indian equities has currently underperformed its Asian peers, which clocked steady-to-firm gains.
"India cannot allow terrorists to operate across the LoC (Line of Control) and strike with impunity," Director General Military Operations Lt. Gen. Ranbir Singh told a hurriedly called press briefing here, soon after a meeting of the Cabinet Committee on Security.
"The strikes were carried out based on specific and credible information," he said.
All the 19 sub-indices of the BSE were trading in the red. Heavy selling pressure was witnessed in realty, power, industrials and healthcare sectors.
Among the key laggards in the Sensex space, banking shares came under hammer. Shares of ICICI Bank tumbled 3.7 percent to Rs 251.25, Axis Bank dropped 1.9 percent to Rs 538.75 and SBI lost 1.8 percent to Rs 248.75.
Other heavyweight losers were Tata Steel, Sun Pharma, Adani Ports, Tata Motors, Cipla and Bharti Airtel, which were down over 1-2 percent each.
With IANS report