Sensex leaps 2.3% on war opportunities

Contrary to the popular perception that the market may tank on news of the war, Indian markets rose by 2.29 per cent on Thursday. Share prices spurted almost across the board, lifting the 30-share BSE Sensitive Index (Sensex) by 71.75 points to 3,192.93 even after the US-led coalition attacked Iraq.

The market, on the other hand, was undaunted on the back of hopes that the war will come to an end soon, and may not disrupt global economic activity significantly. Operators built positions in several stocks in anticipation of a sustained rally. “Buying support was conspicuous in new and old economy stocks. Local as well as foreign institutional investors (FIIs) engaged in selective bargain hunting,” said stock dealer R. A. Podar.

The NSE’s S & P CNX Nifty Index also gained 21.35 points to settle at 1,025.25. Many Asian stock markets also did not take the news of war on a negative note on the premise that it could herald the end of a protracted period of economic and financial uncertainty. Tokyo’s benchmark Nikkei average closed 1.79 per cent higher at 8,195.05. South Korean shares closed 4.92 per cent higher, Taiwan finished up 1.86 per cent and Australia ended 0.68 per cent higher. Hong Kong also finished higher.