15 May, 2021

Kargil Scars Skin-Deep

Bourses rebound after border concussions as FIIs keep faith in an economy on a revival course

Kargil Scars Skin-Deep
The shells dropped at Kargil may have shaken the markets in India, but, without doubt, the quake hasn't measured significant on the Richter Scale. While industry has shrugged off the possibility of an adverse impact of the border battle, the bourses are, quite unpatriotically, close to normal after 10 days of nervous gyrations, piercing the 4000-point barrier on June 4. Says a bemused Ajay Srinivasan, managing-director of Prudential icici Asset Management Co: "Not that we're not worried, but it's as if the markets just need an excuse to discount the possibility of a war."

As Indian planes went down over Kargil, the bourses started hiccuping badly. Market players were unnerved by the sudden turn in sentiments. Says Sandeep Ghate, director, Securex Investments: "On several occasions in the past, the market in a free-flowing bull run has been stymied by the news of conflict on the border." The market encountered some unbelievable battering, even though the manner of its crash indicated short-sellers were pretty much absent. On May 27, the bse Sensex crashed by...

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