Bourses Dips after the Comment from DGMO

The morning had been beautiful for both the bourses.

Sensex opened with a rise of over 150 points while Nifty
jumped past 8,800 over the positive Global cues. Stocks
like ONGC and Reliance became the top gainers right in the
start. MCX share pricejumped 10% to hit fresh 52-weeks
high in the first thirty minutes of trade. ICICI Prudential
listed its IPO at the discounted price of 1.5%, making a
tepid start. Kerala governments plan of revised liquor
policy took the stocks of United Breweries, United
Spirits and Radico Khaitan to the ride of 10% hike. Among these activities DGMO
briefed media over the surgical strikes crossing the LOC. The event began around
12:15 PM, following which Sensex tumbled over 500 points with Nifty breaching
8,600 level by 12:40 PM. Indias Volatility Index went up by 31% hitting the three
month high.

DGMOs brief to Media:

The Director General of Military Operations, Lt General Ranbir Singh briefed media
regarding the Surgical Strike conducted by the India Army crossing the Line of
Control into Pakistan occupied Kashmir. He said that the many infiltration bids by the
terrorist at LOC have been a matter of serious concern. It reflected in the terror
attacks in Poonch and Uri. Indian Army conducted the surgical strike on terror launch
pads over LOC after the army recovered GPS and materials with the markings of
Pakistan. The strike has caused significant casualties in Pakistan and has inflicted
considerable damage to the terrorists position and their terror camps. He also stated
that Indian Military doesnt want to continue with these operations but they are
ready for any contingency plan. Terrorism will not be tolerated.

The Message Delivered:

The Surgical Strike has delivered two messages: One to Pakistan making it clear that
it will not take things lightly anymore and other to the International Community
defining its stand that it will act only to neutralize terrorists across the border, not
intending to escalate it beyond the current operation.

Pakistan Reacts:
Pakistani Army alleged that the firing from Indian Army across the LOC was
unprovoked. However the Pakistani Military has swiftly dismissed the notion of
Surgical Strike.
The Prime Minister of Pakistan, Nawaz Sharif made a statement that their intent for a
peaceful neighborhood should not be mistaken as their weakness. The residents of
Pakistan reacted strongly over the firing stating that if India tries to impose war on
them, they will teach a lesson that India will remember for generations. The resident
firmly retorted that fighting with Pakistan does not mean fighting with the Pakistani
army only. The entire nation will side with the Army on the war.
The AJK Legislative Assembly Speaker Shah Ghulam Qadir said that they prefer to
settle the issues through dialogue and that includes Kashmir as well. And India cant
pressurize them by violating the ceasefire.

Two Pakistan Army soldiers were killed in the strike that took place in Bhimber, Hot
Spring and Kel and Lipa sectors. The strike lasted about six hours. PM Modi is yet to
take a stand regarding the air links between the two countries. All eyes, including that
of investors are set on the developments that might take place later. At
present Nifty is trading at 8,655 and Sensex at 27,997.

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Article Written by
Tanaya Nath