Economics
Stocks, Rupee Pare Declines as Investors Weigh Impact of Attacks
- Impact on assets muted because of soft oil prices: DBS Bank
- Rupee recovers most losses as traders suspect RBI intervention
This article is for subscribers only.
Indian stocks and the rupee bounced off the day’s lows as investors assessed the impact of the rising tensions between India and Pakistan against the backdrop of falling oil prices and buoyant emerging markets.
The S&P BSE Sensex tumbled as much as 1.4 percent and the rupee lost 0.5 percent in reaction to an air strike on a terrorist camp by Indian jets inside Pakistan. The drop in stocks took the sheen off Monday’s jump that had erased the market’s year-to-date loss. The Sensex ended the day to lose 0.7 percent and the rupee was trading 0.1 percent lower.