Sensex, Nifty Fall For Second Day As Geo-Political Tensions Escalate
Domestic equity benchmarks fell for second straight day in a highly volatile session as tensions between India and Pakistan escalated. In intraday deals today, the S&P BSE Sensex fell as much as 636 points from day's highest point, before closing 68 points lower at 35,905. The Nifty 50 index plunged 189 points from its highest level in intraday trade, before settling 29 points or 0.26 per cent lower at 10,807.
An Indian pilot is missing after an Indian Air Force aircraft shot down a Pakistani jet that was targeting installations in India, the government confirmed today after Pakistan claimed "strikes across Line of Control from within Pakistani airspace" in an escalation of hostilities a day after Indian Air Force Jets crossed the Line of Control and struck a terror training camp.
"Nifty is expected to remain volatile on back of news flows on the domestic front. Support for Nifty on downside is at 10,580 and any dips should be used as a buying opportunity as chances of upside till 11,100-11,200 remain open in the near term," Sahaj Agrawal of Kotak Securities said.
"More correction is seen on the cards... if 10,720 breaks on the downside then 10,500 on Nifty can be breached by Friday," AK Prabhakar, head of research at IDBI Capital, told NDTV. Geo-political tensions are escalating and investors will try to protect their capital, he added.
Eleven of 19 sector gauges compiled by BSE ended lower dragged by the S&P BSE Bankex Index's 0.44 per cent decline. Finance, Metal, Consumer Durables and FMCG Indexes also ended on a weak note. On the other hand, S&P BSE Capital Goods Index was top gainer, up 1.13 per cent.
Bharti Infratel was top loser in the Nifty 50 basket of shares, down 3.73 per cent at Rs 296. Vedanta, Wipro, Tata Motors, Hindustan Unilever, Titan and Kotak Mahindra Bank were also among the losers. On the flipside, Bharti Airtel was top gainer, up 2.66 per cent. UltraTech Cement, Larsen & Toubro, Bajaj Auto, Sun Pharma and UPL were also among the gainers.