Markets see volatile trade as geopolitical tension keeps investors on edge

Domestic markets on Wednesday opened on a negative note in the wake of heightened geopolitical tension between India and China.

At today’s opening, BSE Sensex was down almost 80 points lower but bounced back marginally at around 9:40 am. NSE Nifty, too, was just trading slightly above 9,900 points.

Some of the top losers in early morning trade were NTPC, PowerGrid, M&M, SBI, and L&T. On the other hand, some of the top gainers were Maruti Suzuki, Tech Mahindra, Wipro, Britannia, Axis Bank, Bharti Airtel and Infosys.

There has been a sharp rise in market volatility on Wednesday as investors turned nervous due to heightened geopolitical tensions between India and China.

At least 20 Indian Army soldiers were killed in action after they clashed with Chinese PLA troops in Ladakh’s Galwan Valley.

This has spooked investors as the episode is likely to have a negative impact on the Asian markets as well.

The sharp rise in cases in the country has also made matters worse for investors; they are also worried that a second wave of the coronavirus will soon hit many countries.

Globally, it was only Asian markets which performed poorly due to the resurgence of cases in Beijing while US markets enjoyed a robust session.

The boost in US markets was primarily due to reports about a common drug, dexamethasone, helping chances of survival.

It may be noted that the drug reduced deaths by 35 per cent in patients who needed breathing machines and by 20 per cent only needing supplemental oxygen.

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