Indian Rupee and Shares nosedive after the controversial move of Occupied Kashmir
ISLAMABAD - Indian Rupee and Stock Exchange Shares nose dive after the controversial move of Occupied Kashmir by ruling BJP in the Parliament.
The Indian rupee hit its weakest level since Mid-May at 70.49 rupees per dollar.
Prime Minister Narendra Modi's government introduced plans to weaken the special rights of residents in Kashmir, amid heavy deployment of security forces and suspension of phone and internet services in the valley.
“There is uncertainty in how the situation evolves, and it adds political uncertainty to the existing set of issues the market is dealing with,” said Sunil Sharma, Chief Investment Officer at Sanctum Wealth Management.
Domestic investor sentiment in equities, which seemed to be upbeat on Friday after reports said the government was looking into foreign portfolio investors' tax concerns, returned to being bearish due the escalating trade war.
The broader NSE index was down 1.11pc at 10,868.25 as of 0801 GMT, while the benchmark BSE index was 1.11pc lower at 36,670.62.
“The economy is in doldrums and steps taken won't give a boost in the short-term. The global economy is also doing much better than the domestic economy,” said Madhumita Ghosh, Associate Dean at Tasmac Global Solutions.