KR Choksey Investment Managers on Wednesday said the market will rally once the border tension eases between India and Pakistan.

An IAF pilot is "missing in action" and a Pakistani fighter jet has been shot down, New Delhi said on Wednesday as fears of war darkened India-Pakistan relations with Islamabad launching retaliatory strikes and claiming it has arrested two Indian pilots in its territory.

In an interview to CNBC-TV18, Deven Choksey, managing director, said, “The recovery is partly attributed to the sharp fall that we have seen in the knee-jerk reaction and also the fact that you are having the derivative and contract expiry taking place. So I think the actions as far as trading desk is concerned, it is more busy with the contract expiry and the rollovers therein."

"I think the major amount of concentration is happening in corporate banks, where people are putting in larger amount of exposures. People are also putting in exposures into some of the public sector banks, where the prompt correction action (PCA) has been done," Choksey said.

An IAF pilot is "missing in action" and a Pakistani fighter jet has been shot down, the government said today as fears of war darkened India-Pakistan relations with Islamabad launching retaliatory strikes and claiming it has arrested two Indian pilots in its territory.