Market extends losses as India-Pakistan tension escalates; fear of FIIs' slowing down investment activity casts shadow over domestic equities
Investor sentiment took a beating after Pakistani fighter jets on Wednesday violated Indian air space in Jammu and Kashmir's Poonch and Nowshera sectors, brokers said
After rising nearly 400 points in early trade, the Sensex turned negative triggered by across-the-market selling by participants
The index finally settled 68.28 points, or 0.19 percent, lower at 35,905.43
The rupee depreciated 25 paise to 71.32 after touching a low of 71.49 against the dollar (intra-day), also hitting trading sentiments
Mumbai: The benchmark BSE Sensex surrendered early gains on Wednesday to end in the negative terrain by shedding 68 points on escalating tensions between India and Pakistan.
Investor sentiment took a beating after Pakistani fighter jets on Wednesday violated Indian air space in Jammu and Kashmir's Poonch and Nowshera sectors, brokers said.
After rising nearly 400 points in early trade, the Sensex turned negative triggered by across-the-market selling by participants. The index finally settled 68.28 points, or 0.19 percent, lower at 35,905.43.
The gauge had lost 239.67 points Tuesday.
The 50-share Nifty also fell 28.65 points, or 0.26 percent, to 10,806.65. Intra-day, it moved between 10,939.70 and 10,751.20.
The rupee depreciated 25 paise to 71.32 after touching a low of 71.49 against the dollar (intra-day), also hitting trading sentiments.
Fears that foreign institutional investors (FIIs), who have been pumping sizeable funds into the Indian bourses in the past few sessions, may slow down their activity, too cast a shadow over domestic equities, experts said.
Pakistan on Wednesday claimed that it shot down two Indian military aircraft over Pakistani air space and arrested one of the pilots.
Later in the day, India's External Affairs Ministry said Pakistan has used its Air Force to target military installations in India in response to Indian counter-terrorism operations but their attempts were foiled successfully though one Indian pilot is "missing in action".
The move came after the Indian Air Force on Tuesday struck Jaish-e-Mohammed's (JeM) biggest camp in Pakistan in a major "preemptive" action, killing a large number of terrorists and trainers of the Pak-based terror group preparing to carry out suicide attacks in India.
Domestic institutional investors sold equities to the tune of Rs 720.27 crore, while foreign institutional investors (FIIs) bought shares worth a net Rs 1,674.17 crore, provisional data showed.
Jammu and Kashmir: Srinagar decked up for G20 working group meeting; security heightened
Stringent security arrangements are in place across the Kashmir Valley to ensure that the high-profile event passes off peacefully, officials said
G20 summit to begin in J-K's Srinagar today amid tight security, green tourism and digitalization to get spotlight
The event will witness the participation of G20 member countries, invited countries, international organizations, and industry stakeholders. The meeting aims to strengthen economic growth, preserve cultural heritage and promote sustainable development of the region.
India slams UN Special Rapporteur for his criticism of holding G20 meet in Kashmir
Srinagar will be hosting the G20 meeting of the working group on tourism from May 22 to May 24