Eleven days after the Pulwama attack, the Indian Air Force on Tuesday morning crossed the Line of Control and carried out a strike at multiple targets.
Amid calls to take revenge for the Pulwama attack, Prime Minister Narendra Modi had recently assured: “Is baar pura hisab lenge", meaning “We’ll take full revenge this time”.
As many as 12 Mirage fighter jets of the Indian Air Force struck Jaish-e-Muhammed terror launchpads in Balakot, Muzaffarabad and Chakothi areas in Pakistan. The attack was carried out at around 3:30 am and lasted around 21 minutes. As per sources, the fighter jets dropped 1,000 kilograms of bombs at terrorist camps across the Line of Control.
After getting the news update, the USD/INR opened at 71.25 around 27 paisa weaker with respect to yesterday’s closing price of 70.98. Rupee made a low of 71.3350 and settled around 71.05. While the move may have geopolitical ramifications, it could also be an opportunity to sell the 4 currency pairs at higher price.
The stock market also reacted proactively to the IAF strike. The BSE Sensex fell nearly 500 points, whereas Nifty opened at 10775 around 100 points weaker and the fear gauged India VIX surging 17 per cent. Afterwards, the market recovers around 70 points & settles around 10850. It could be a good opportunity for the traders to buy the stock in the early trading session. Due to increase in USD/INR, the IT stock opened on the positive note, whereas the NBFC and Banking stocks openedon negative note.
According to analysts, it could be the better opportunity to buy banking stocks at lower levels and the opportunity for the exporters to cover their receivables at higher levels.