Stock market sees heavy volatility during PM’s address

PTI, Mar 27, 2019, 3:09 PM IST

Mumbai: Benchmark indices witnessed heavy volatility amid Prime Minister Narendra Modi’s address to the nation, reflecting nervousness of the investor community over the subject.

The 30-share benchmark index dived by over 100 points but recovered sharply to 38,402.35 at 1234 hrs as Prime Minister announced that India had shot down a live satellite in space with an anti-satellite missile in a major breakthrough in space programme.

The markets, which opened higher in the morning over Tuesday’s close, sharply dipped following the twitter message as it wasn’t clear what the subject of the address to the nation was.

The benchmark BSE Sensex jumped over 200 points on Wednesday during Modi’s announcement that India had demonstrated anti-satellite missile capability by shooting down a live satellite.

The 30-share index was trading at 38,443.5, up 212.98 points at 12.24 hrs.

The benchmark index had jumped over 200 points in the opening trading session.

Meanwhile, buying was also seen in defence stocks, with Hindustan Aeronautics rising 7.25 per cent, Bharat Dynamics 6.26 per cent, Walchandnagar Industries Ltd 3.61 per cent and BEML 1.31 per cent on the BSE.

The benchmark BSE Sensex was at 38,445.38 points a minute before the Prime Minister took to the twitter at 11.23 am to announce his address to the nation.

“I would be addressing the nation at around 11:45 AM – 12.00 noon with an important message. Do watch the address on television, radio or social media,” he tweeted.

But it was not until 12:24 that he made the near 10-minute address.

With no precedence of such address after general elections were announced, other than when Indira Gandhi and Rajiv Gandhi were assassinated in 1984 and 1991 respectively, memories of November 8, 2016, were revived when Modi made his first address to the nation to announce demonetisation of 86 per cent of the currency in circulation.

With election code is in place, it was felt that no policy announcement could be made and there could be some development on the Pakistan front as the Cabinet Committee on Security met just before the twitter message.

Sensex fell to 38,332.22 by 11.35 am and further to 38,304.09 by 11.58 am.