A week is a long time and one saw that in the week gone by. Spirits after the Pulwama terror strike were down and the kind of spontaneous response one saw the martyred Jawans receive when they were laid to rest was unprecedented. The government gave full freedom to the armed forces to cull out an appropriate reply for state sponsored terrorism from across the murder.
What followed on Tuesday the 26th of February was a pre-emptive strike by the Indian Air Force, into Pakistan territory where they destroyed a terror camp at Balakot in Khyber Pakhtunkhwa province besides two others. This was in the early hours of Tuesday the 26th of February and came 12 days after the suicide bomber attack in Pulwama. This was the first time that India crossed the LOC or line of control into Pakistan territory. This was followed by an aerial attack by Pakistan on the following day which was thwarted and a F-16 fighter jet of PAF brought down by a MIG21 bison aircraft. Unfortunately the MIG caught fire and crashed and the pilot was captured in POK.
This was a massive mobilisation, meticulously planned and saw the main strike taking off from Gwalior air base and not the border air bases. The three service chiefs addressed the press and gave details of the attack, Pakistan’s aggression and the Indian pilots capture.
The return of Abhinandan the heroic pilot in about 48 hours without any conditions is a result of the intense global pressure on Pakistan to act. While they have done so, the pilot’s physical condition leaves a lot to be desired. Ever since his return there was intense firing on the LOC from Pakistan and the same seems to have reduced after over 48 hours.
Firstly India refused to allow the release of Wing Commander Abhinandan to be used as a bargaining chip. He had to be released without conditions under the Geneva convention. Secondly the sale of F-16 aircrafts to Pakistan were for use against terrorism and not for aggression. They are now fighting a battle with the US and the plane manufacture for violations. All of this and the fact that the United Nations Security Council resolution on the JEM terrorist is to be voted upon on March 13th. Unless China vetoes the resolution. Masood Azhar would be proclaimed as a terrorist.
Coming to the markets, they were in fine fettle and ended the week with gains. BSESENSEX gained 192.33 points or 0.54% to close at 36,063.81 points while NIFTY gained 71.85 points 0.67% to close at 10,863.50 points. Broader markets saw BSE100, BSE200 and BSE500 gain 0.92%, 1.08% and 1.29% respectively.
The Indian Rupee gained 23 paisa or 0.32% to close at Rs 70.91. Dow Jones was down 5.49 points or 0.02% to close at 26,026.32 points.
February futures expired on a flattish note with a small loss of 38.45 points or 0.36% at 10,792.50 points. The week was about the sharp rebound in midcap and Smallcap space which gained 2.35% and 3.43% respectively. It is this segment which is expected to be in the forefront in the coming week and bring smiles on the faces of thousands of investors.
FII’s have been bullish and been net buyers over the past fortnight if not longer. With a trading holiday on Monday, expect markets to open on a strong note on Tuesday. The momentum should see markets gaining next week.
