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Kargil air-strikes send shockwaves through bourses

The Indian Air Force's air-strikes in the Kargil region of Kashmir sent shockwaves through the financial markets in the country's commercial capital Bombay.

The stock indices registered heavy losses on the Bombay Stock Exchange and the National Stock Exchange, while the Indian rupee at the interbank foreign exchange market fell sharply by eight paise against the US dollar amidst volatile trading.

The Indian global depository receipts in the international market also declined sharply immediately after the opening of trading there.

The 30-scrip BSE Sensex, before witnessing an intra-day downward volatility of over 166 points tumbled by 86.78 points or 2.13 per cent at 3973.30 points from the previous close of 4060.08 points.

The Indian rupee at the forex market eased by eight paise against the greenback to close at Rs 42.8250/8350 from the previous close of Rs 42.7500/7600 per dollar.

The broad-based BSE-100 National Index too shed by 37.69 points (2.19 per cent) at 1719.20 points from the previous close of 1756.89 points.

The S&P CNX Nifty Index at the NSE dropped by 24.70 points or 2.13 per cent at 1135.50 points as against the previous close of 1165.15 points.

According to stock brokers, market players off-loaded heavily at prominent counters, ''worried over the increased tension at the Indo-Pak border on the issue of intruders and the air strikes by India.

The rupee has gone down sharply only because of the tension at the indo-pak border, if the tension on the border escalates the rupee may slide further tomorrow, said a forex dealer.

According to Skindia Finance, the Indian GDR monitor, the Skindia GDR Index dropped by 26.13 points to 730.76 points from the previous day's close of 756.69 points at 1200 GMT.

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