BUSINESS

Indian Markets See The Biggest Drop Since Brexit As Indian Army Conducts 'Surgical Strikes'

The BSE Sensex closed down 1.64 percent, to end at 27,827.53.

29/09/2016 5:04 PM IST | Updated 29/09/2016 5:53 PM IST
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Danish Siddiqui / Reuters

Indian shares saw their biggest declines since the Brexit vote in June, following Indian army's announcement on Thursday that India had carried out "surgical strikes" on militant targets across the line of control.

The Nifty ended down 1.76 percent to 8,591.25, posting its biggest daily percentage fall since June 24, the day after the Brexit vote.

Early in the day, the BSE Sensex had dropped as much as 2.1 percent to its lowest intraday level since Aug. 29.

The Sensex closed down 1.64 percent, or 465.28 points, to end at 27,827.53.

The rupee weakened to a low of 66.91, also the worst drop in the currency since June.

According to Economic Times, India markets regulator SEBI was on alert after the market crash during the day and has asked the country's stock exchanges on their level of preparedness from any fallout.

Sanjiv Bhasin, executive vice president - Corporate Affairs, IIFL told Mint, " Today's fall in Indian equities is an indication that geo-political risk is on a rise. FIIs are likely to sell from hereon. We see the Nifty at 8,400 level and Bank Nifty at 18,500 levels next week. It is now a sell on rally market."

With agency inputs

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