ISLAMABAD – Indian Rupee and Stock Exchange Shares nose dive after thecontroversial move of Occupied Kashmir by ruling BJP in the Parliament.
The Indian rupee hit its weakest level since Mid-May at 70.49 rupees perdollar.
Prime Minister Narendra Modi’s government introduced plans to weaken thespecial rights of residents in Kashmir, amid heavy deployment of securityforces and suspension of phone and internet services in the valley.
“There is uncertainty in how the situation evolves, and it adds politicaluncertainty to the existing set of issues the market is dealing with,” saidSunil Sharma, Chief Investment Officer at Sanctum Wealth Management.
Domestic investor sentiment in equities, which seemed to be upbeat onFriday after reports said the government was looking into foreign portfolioinvestors’ tax concerns, returned to being bearish due the escalating tradewar.
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The broader NSE index was down 1.11pc at 10,868.25 as of 0801 GMT, whilethe 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 theshort-term. The global economy is also doing much better than the domesticeconomy,” said Madhumita Ghosh, Associate Dean at Tasmac Global Solutions.
