Equity benchmark indices ended lower on Tuesday after Indian fighter jets blasted major terror camps in Pakistan following a suicide militant attack in Pulwama about two weeks ago.
With escalations in geo-political tensions, the uncertainty in stock markets could linger on, traders said. Banks, infrastructure, metals and autos are likely to be among the worst performers in case of a negative sentiment.
The BSE S&P Sensex plunged 240 points down to close at 35,974 with Yes Bank, ICICI Bank, State Bank of India, Hero MotorCorp and Tata Steel among the worst performers.
Shares of Dewan Housing Finance Corporation (DHFL) slipped 8 per cent on the Bombay Stock Exchange in early morning trade after rating agency ICRA downgraded the company’s commercial papers worth Rs 8,000 crore to A2+ from A1+.
However, shares of Tata Motors ended higher for the 10th straight trading session, up 4.07 per cent at Rs 183 per share, as Tata Sons increased its stake in the company by nearly one percentage points through open market purchases.
Meanwhile, Asian markets were jittery amid deteriorating global economic outlook.
US President Donald Trump said on Monday that he may soon sign an agreement with Chinese President Xi Jinping to end the trade dispute if their countries can bridge remaining differences. He said negotiators are “very, very close” to a deal.