Domestic markets in India opened flat on Wednesday as investors expressed concerned after US President Donald Trump said the country is preparing action against China.
Trump’s statement comes after China’s plans to impose a national security law on Hong Kong.
Soon after his statement, Asian stocks shed gains as the fresh tension between the two countries could derail plans of re-opening the world economy.
At around 9:30 am, BSE Sensex was trading 64 points higher at 30,673.66, while NSE Nifty was trading just 0.13 per cent higher. By 10:15 am, Sensex and Nifty had lost more ground but both benchmarks remained in positive territory.
Nifty Sectoral indices were mixed in early trade as Nifty Bank and Private Bank proved to be the saving grace, gaining over 1 per cent. Auto, FMCG, IT, Media and Realty were all in red.
Some of the top gainers during the morning trade session were Axis Bank, ICICI Bank, Kotak Mahindra Bank, Hindalco and Tata Motors. Meanwhile, Titan, Mahindra and Mahindra, ITC and HCL Tech were some of the top losers.
Apart from the fresh tension between US and China, investors are also worried about the sharp rise in coronavirus cases in India. The country has now reported over 1.51 lakh coronavirus cases with over 4,300 deaths.
Another concern that has pulled down the stock market is the fact that companies, despite resuming operations, are facing a demand crunch.
Some MSMEs owners who spoke to India Today TV said there is absolutely no demand during the period and that the future continues to remain uncertain in the absence of new orders.
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