Sensex, Nifty Decline As Tensions Rise With Pakistan

(RTTNews) - Indian shares closed Thursday's session lower as growing concerns over escalating India-Pakistan tensions curbed investors' appetite for risk.

In a calibrated and proportionate military response, the Indian Armed Forces this morning targeted air defense radars and systems at multiple locations inside Pakistan.

One of the significant targets — an air defense system positioned in Lahore — was successfully neutralized, according to a press release by PIB.

Defense sources said that the Indian Air Force deployed its S-400 Sudarshan Chakra air defense missile systems last night to engage targets approaching Indian airspace.

Also, Pakistan has increased the intensity of its unprovoked firing across the Line of Control using Mortars and heavy calibre Artillery in areas in Kupwara, Baramulla, Uri, Poonch, Mendhar and Rajouri sectors in Jammu and Kashmir.

A rebound in oil prices ahead of upcoming U.S.-China trade talks and a strengthening dollar on the hawkish Fed rate decision also led to risk aversion in the domestic markets.

The benchmark 30-share BSE Sensex fell 411.97 points, or 0.51 percent, to 80,334.81 while the broader NSE Nifty index closed down 140.60 points, or 0.58 percent, at 24,273.80.

The BSE mid-cap and small-cap indexes tumbled 1.9 percent and 1.1 percent, respectively.

The market breadth was weak on the BSE, with 2,558 shares declining while 1,339 shares advanced and 135 shares ended unchanged.

Bharti Airtel, Tata Steel, Bajaj Finance, Maruti Suzuki India, Mahindra & Mahindra and Eternal all fell 2-3 percent while Axis Bank, Kotak Mahindra Bank and HCL Technologies rose around 1 percent each.

Asian Paints dropped 1.3 percent after reporting disappointing Q4 numbers. Tata Motors ended modestly higher after reports emerged that the U.S. and U.K. will announce a trade deal later in the day.