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Market, rupee fall as India-Pak tensions flare, Sensex sheds 200 points

UK terror attack, reports against Trump on collusion with Russia also weigh on investor sentiment

Pavan Burugula  |  Mumbai 

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Domestic stocks and weakened on Tuesday after investors turned cautious following flaring up of tensions with The suspected terrorist attack in the UK and reports against the Trump administration on collusion with Russia also weighed on investor sentiment.

The benchmark lost 205 points, or 0.67 per cent to close at 30,365, while the closed at 9,386, down 52 points or 0.55 per cent. The broader market saw a steeper correction with the dropping 1.6 per cent. The fell 0.53 per cent to close at 64.89 against the dollar.

The Indian army, during the trading hours, announced that it had entered to destroy terror camps. The Indian had opened weak in Tuesday's trade but had erased most of the day's losses ahead of the Army's announcement.

"Factors like these always create some nervousness in the market. During the last hour of trading, we saw a bout of selling by investors due to the brewing tensions between India and If the situation escalates further, it could trigger a correction in the However, the impact would depend on how long the issue will stretch out," said Rikesh Parikh, vice-president, corporate broking,

Experts said the rise of geopolitical concerns in Asia and around the world could be a risk for the market

"Global developments could have a significant impact on Indian We are seeing some selling by foreign investors. There could be to redemptions in emerging market (EM) exchange traded funds (ETFs)," said Prateek Agrawal, chief investment officer(CIO), ASK Investment Managers.

Foreign portfolio investors (FPIs) sold Rs 400 crore worth of equities during the session, while domestic institutions bought Rs 352crore, provisional data from stock exchanges showed.

Among components, fell the most at 6.2 per cent. Shares of and lost 4.9 per cent and 4.3 per cent respectively.