The strikes the army spoke of today are the first major military action taken by India after terrorists from Pakistan crossed into an army camp in Uri in Kashmir earlier this month. 18 soldiers were killed in that attack. Prime Minister Narendra Modi has pledged that the attack will not go unpunished.
Details of the strike were announced after PM Modi called an urgent meeting of his cabinet committee on security.
Sanjay Dutt of Quantum Securities says although the geopolitical risk is disconcerting, he does not think the military situation would go out of control. Dutt says these in fact could be opportunity to accumulate stocks. India’s fundamental story does not change even if there is a 15-20 days encounter. The secular trend remains integral. However, he cautions against going out and buying now and advices to wait and see what happens.
The market has seen severe cuts on geo-political risks. Director General of Military Operations Lt General Ranbir Singh told media that the Indian Army has conducted surgical strikes crossing the Line of Control (LoC) into Pakistan Occupied Kashmir inflicting significant damage to the terrorist infrastructure across the border.