Indian rupee, shares slump after claim of 'surgical strike'
The benchmark index is trading lower by 300-500 points.
NEW DELHI (Web Desk / Reuters) - Indian shares, bonds and the rupee fell sharply on Thursday after Indian army made a ‘false‘ claim of conducting a surgical strike across the Line of Control.
Investors in India had already been growing cautious ahead of the Reserve Bank of India s policy review on Tuesday.
The Nifty was down 1.5 percent after falling as much 2.07 percent.
Benchmark 10-year bond yields were up 8 basis points at 7.00 percent from its previous close while the rupee weakened to 66.80/81 from its close of 66.46 on Wednesday.
Pakistan today dismissed as "fabrication of truth" India’s claim that it has conducted a military operation across the LoC to target terrorist launching pads, terming it as a "quest" by India to create media hype by rebranding cross-border fire as surgical strike.
"There has been no surgical strike by India, instead there had been cross border fire initiated and conducted by India which is existential phenomenon," Pakistan army said in a statement.
"As per rules of engagement same was strongly and befittingly responded by Pakistani troops.
"The notion of surgical strike linked to alleged terrorists bases is an illusion being deliberately generated by Indian to create false effects. This quest by Indian establishment to create media hype by rebranding cross border fire as surgical strike is fabrication of truth," it said.
Pakistan has made it clear that if there is a surgical strike on Pakistani soil, same will be strongly responded, the statement said.
