The Sebi – Securities Exchange Board of India went on a crucial alert on Thursday after domestic stocks and the currency crashed majorly amid rising hostilities across the border. According to reports, the market regulator, Sebi has sought a report from the domestic stock exchanges on how they have prepared to deal with any form of contingency in the wake of a steep plunge in the benchmark equity indices triggered by Indian Army’s surgical strikes on terror bases in POK – Pakistan-occupied Kashmir. The detailed reports were to be submitted by the stock exchanges by yesterday evening.

1. Sebi Alerts Markets, Rupee Sees Biggest Dip since Brexit
The Sebi - Securities Exchange Board of India went on
a crucial alert on Thursday after domestic stocks and
the currency crashed majorly amid rising hostilities
across the border. According to reports, the market
regulator, Sebi has sought a report from the domestic
stock exchanges on how they have prepared to deal
with any form of contingency in the wake of a steep
plunge in the benchmark equity indices triggered by
Indian Army’s surgical strikes on terror bases in POK -
Pakistan-occupied Kashmir. The detailed reports were
to be submitted by the stock exchanges by yesterday
evening.
Impact on stock market and rupee:
The Nifty50 crashed 154 points while the benchmark Sensex lost 465 points in a knee-jerk
response to the signs of rising hostilities across the border between the two neighbors.The
Indian National Rupee or INR weakened to a one-week low of ‘66.91’, thereby marking
the worst plunge for the domestic currency since the Brexit vote which happened in June.
Albeit, the domestic currency recovered a bit to settle at ‘66.85’, down 39 paise over the
previous day closing of ‘66.4’. The following is a candle stick bar chart to give you a
better picture:

2. The India VIX witnessed the biggest rise in seven long years. It shot up by 33 percentage
points to 18.45. VIX or Volatility Index is a popular measure of the implied volatility of
S&P 500 index options. The ten-year bond yield galloped to a one-year high.
Fresh reports have suggested that villages in the state of Punjab, which are located 10 km
away from the international border with Pakistan, began evacuating yesterday.
Director General of Military Operations (DGMO) LT Gen Ranbir Singh on his toes:
Director General of Military Operations DGMO Lt Gen Ranbir Singh on Thursday stated
that India carried out surgical strikes in Pakistan-occupied Kashmir (POK), inflicting
heavy casualties on the terrorists and those shielding them.
Ranbir Singh further continued that the operations were concentrated on ensuring that the
terrorists do cause any destruction and endanger the lives of the Indian citizens. He added
that the operations aimed at neutralizing terrorists have since come to halt. However, the
Indian Army were fully prepared for any contingency that might arise, Singh concluded.
Impact of the press briefing by DGMO on the domestic equity indices:
Following the press briefing by the DGMO, the domestic equity indices slumped up to 4
per cent amid worries that the foreign investors, who have pumped in close to Rs.50,000 cr
into domestic stocks so far in this year, might run for the exit door if the hostilities and
tensions rose further.

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The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
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Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022
Disclosure
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registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued
advise letters or levied minor penalty on for certain operational deviations.
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Analyst/ his Relative:
 Do not have any financial interest / any actual/beneficial ownership in the subject company.
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Article Written by
Salman Hashmi