Nation
Panic, disbelief in Kashmir as India makes surgical strikes
 Panic, confusion and disbelief gripped Kashmir residents on Thursday as India said it carried out surgical strikes at terrorist launch pads across the Line of Control (LoC) inflicting heavy casualties on terrorists and their supporters.
 
Reports from Uri sector in north Kashmir's Baramulla district, where cross-border terrorist attack at an army camp on September 18 left 18 Indian troops killed, said people living close to the LoC have already started migrating to safer areas.
 
People were seen rushing home earlier than usual in Srinagar as the news of the surgical strikes by Indian special forces spread.
 
The Kashmir Valley has been shut for 83 consecutive days, following the July 8 killing of Hizbul Mujahideen commander Burhan Wani. However, there is no curfew anywhere in the valley.
 
"Whether a knife falls on a melon or a melon falls on the knife, it is always the melon that gets cut," said Zahoor Ahmad, 52, a businessman in north Kashmir's Ganderbal district.
 
"In wars between India and Pakistan, the Kashmiris have always been the worst sufferers and if, God forbid, a war breaks out now, we would be at the receiving end again," he stressed.
 
"Is the worst still to come? Is it already lurking in the dark? Will they (India and Pakistan) really be so mad so as to start a war which will destroy both?" cynically asked Abdul Gani, 58, while recalling the horrors of the 1965 war when he was a child.
 
"My mother would hide us in a dark room after serving an early dinner and speak in whispers," Gani recalled.
 
There were others who wished to believe that there would be no war, given Pakistan's denial of surgical strikes by India.
 
"I think it is just cross-border firing in which two Pakistani soldiers have been killed and nine others injured, which is being overplayed to satisfy bruised egos," said Professor Muzaffar Ahmad, a college principal.
 
"I don't think any country, much less a country like Pakistan, would eat a humble pie by not even admitting that an incident like surgical strikes within their territory had taken place," he added.
 
"People have started shifting with their families to safer places away from the LoC in Uri areas after today's (Thursday) development," said an official.
 
Reports said the Centre had spoken to the state government about "hot pursuit launched across the LoC against militants ready to infiltrate into J&K", but there was no official word so far from any leader of the Peoples Democratic Party-Bharatiya Janata Party coalition over the development.
 
A senior state minister said it was a wait-and-watch situation while contingency plans about evacuation of the border area residents were already in place.
 
"We are glued to our television. These TV channels have already declared a war even before the fighter planes start hovering over our heads," said local lawyer Suhail Ahmad, 32.
 
"It appears that everybody anchoring news programmes on TV news channels is a foot soldier already fighting a full-fledged war," he added. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Markets likely to gain after surgical strikes
Following the news of surgical strikes by the army across the line of control (LOC), the Indian equity market plunged. Both the benchmarks NSE Nifty and BSE Sensex ended the day lower by over 1%. However, according to a research report, despite a negative initial reaction, Indian markets are likely to gain post these strikes.
 
State Bank of India (SBI) in its Ecowrap report says, "While the initial response of the financial market has been negative, we believe such attacks are unlikely to have any material impact on the markets. Indian economy is currently on a sound footing with favourable macro numbers."
 
"For example," it said, "the Kargil war was fought between India and Pakistan in Kargil, during May to July 1999. During the aforesaid period, the leading indices of Indian stock markets show an initial decline but recovery thereafter. The Sensex and Nifty has declined by 286 points and 79 points in three trading initial days respectively, but recovered thereafter and ended higher by 652 points and 191 points when the conflict ended. The overall impact of the Kargil war was actually positive. The economy grew at the same pace in 1999-2000 as the year before - a healthy 6.5%."
 
 
During the period, Rupee has depreciated by 1.2% against dollar, while a minor change of 2 basis points in 10-Year G-secs. It may be noted that India had a fiscal deficit of close to 6% in FY2000. Interestingly, the rupee stayed at the nearly the same level during the rest of the FY2000 indicating that the value of the rupee is more determined by external factors.
 
The Sensex ended Thursday 1.6% or 465 points down at 27,827, while the Nifty closed the day 1.8% or 153 points lower at 8,591 points. 
 
"We also believe that the impact of the surgical strikes will have no impact on the markets as like the Kargil conflict. For one thing in common, these conflicts are more localized in nature. Also, now that India has clearly reaffirmed that its patience cannot be taken as granted, these will in fact act as a positive for the markets for the  decisiveness in India’s foreign policy," the Ecowrap report says.

 

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COMMENTS

Vannala Keervanamma

8 months ago

Thanks sir for giving us confidence.

Deepika Chatterjee

8 months ago

Did the market fall after Uri? Why now? Speaks volumes of the patriotism of Indian business class

Ramesh Poapt

8 months ago

reaction/impact may be higher than anticipated. too early to forecast.
already negatives are looming large that has been underestimated by the market.

G R Chari

8 months ago

Action speaks louder than words and Modi govt. has proved that it's a government that acts. From the market point of view the timing may have been bad, but expect a "V" shaped recovery.

Leslie Menezes

8 months ago

The Modi government has been smart this time. After talk of 1000 year war on poverty this news is really refreshing.

SRINIVAS SHENOY

8 months ago

The Government has taken the right approach in the present circumstances. Our patience should not be taken for granted at all times.

SRINIVAS SHENOY

8 months ago

The Government has taken the right approach in the present circumstances. Our patience should not be taken for granted at all times.

Nifty, Sensex may rebound from the fall in a day or two – Thursday closing report
We had mentioned in Wednesday’s closing report that Nifty, Sensex might rally a bit. The major indices of the Indian stock markets suffered a sharp correction on Thursday after the government revealed that it struck at terrorist camps across the Pakistan border. The trends of the major indices in the course of Thursday’s trading are given in the table below:
 
 
Indian equities tumbled sharply on Thursday after the army said it conducted surgical strikes on terror camps along the Line of Control (LoC) in Jammu and Kashmir, inflicting "significant casualties". The barometer 30-scrip sensitive index (Sensex) of the BSE, which was ruling strong in the morning after the unexpected production cuts agreed to by oil producing countries, took a fall of more than 500 points after the relevant briefing by the Indian Army. However, value buying arrested the steep falls and led to a bounce back. Nonetheless, speculative selling, profit booking and derivatives expiry dynamics again dragged the key indices lower during the late-afternoon trade session. The BSE market breadth fell prey to the bears -- with 2,297 declines and 442 advances.  On the NSE, there were 77 advances, 1,415 declines and 31 unchanged.
 
The CNX Nifty and Bank Nifty traded down on selling pressure. IT (information technology) stocks witnessed some recovery at lower levels tracking firm USD/INR futures prices. Banking, pharma and auto stocks traded down on selling pressure. Aviation stocks traded down tracking higher crude oil prices. Oil-gas, textile and FMCG stocks also traded down on over all selling pressure in the market.
 
The Indian rupee on Thursday tumbled to its lowest level in the last one week after the army announced that it had carried out "surgical strikes" on terror camps across the Line of Control (LoC) with Pakistan. The Indian currency, which opened at 66.44 to a US dollar, had already depreciated in the initial hours of the day's trade in line with the weakness in Asian currencies. The sharp fall occurred around 1.00 p.m. when the rupee depreciated to 66.95 to a US dollar. This level was last seen on September 22. However, the Indian currency bounced back marginally to 66.85 to a greenback before speculative selling dragged it lower to 66.90 at 4.10 p.m. 
 
Indian content conglomerate Zee Entertainment Enterprises Limited (ZEEL) on Thursday announced its foray into the radio industry with the acquisition of UAEs Hum 106.2 FM radio station. After being a pioneer with the launch of India's first Hindi satellite channel, Zee TV in 1992, Zee Entertainment was the first to launch a Bollywood TV channel, Zee Aflam in 2008 for the Arab audience as well introduce the Arab world to Hindi programs dubbed in Arabic with Zee Alwan in 2012. Commenting on the latest acquisition, Amit Goenka, CEO - International Broadcast Business, ZEEL said in a statement: "Radio has been an area of interest for ZEE for quite some time and after extensive planning and studying of the brand values, ratings and revenue generated by various stations, we felt that an investment in Hum FM was the best option." According to Goenka, Hum FM has a legacy of almost two decades and with a current market share of 26%, it is the top Hindi radio station in the UAE. "ZEE is confident that it can leverage its very strong South-Asian brand connect onto Radio, and offer a synergy of television, radio and digital that could revolutionize the entertainment industry in the UAE. The company’s shares closed at Rs544.70, down 0.69% on the BSE.
 
The government has hiked the annual cap of coal for sale through state-nominated agencies to 10,000 tonnes per annum from 4,200 tonnes per annum (TPA). "Union Ministry of Coal has issued an order with respect to the amendment to the New Coal Distribution Policy (NCDP), 2007 to increase the annual cap of coal from 4,200 tonnes per annum for sale through state-nominated agencies (SNA) to 10,000 tonnes per annum," a Coal Ministry statement said. The New Coal Distribution Policy, 2007 lays down the guidelines for distribution and pricing of coal to various sectors. The ministry has also amended the phrase "small and medium sector", as mentioned in the NCDP, to "small, medium and others". The order said the new guidelines will also be applicable to the distribution of coal from Singareni Collieries Company (SCCL). Coal India’s shares closed Rs327.30, down 0.43% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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