Mumbai (Maharashtra) [India], May 7 (ANI): Indian stock markets opened in negative but recovered and trading in flat at the time of filing this report on Wednesday after India launched anti-terrorist strikes in Pakistan.
The Nifty 50 index opened with a decline of 146 points at 24,233.30, or a decline of -0.60 per cent, while the BSE Sensex opened at 79,948.80 with a decline of -692.27 or -0.86 per cent. But soon indices recovered the losses.
Experts noted that now Indian markets may react negatively to the tensions at the border which materialized last night.
Ajay Bagga, a Banking and Market Expert, told ANI, “The geopolitical risk that was hanging over the Indian markets has got crystallised today with the Indian strikes on PoK and Pakistan-based terror camps. Indian markets will open with a negative gap as we saw when the Uri and Balakot strike news was announced.”
He added that the future impact on markets will depend on how the situation evolves in the coming days.
“The future impact on the market will depend on whether this strike remains contained to today or if it expands. Geopolitical risk remains elevated and we could see some more selling in the Indian markets,” Bagga said.
In the sectoral indices on the NSE, Nifty FMCG, IT, Media and Pharma all declined more than at the time of filing this report while the Nifty Auto gained 0.47 per cent Nifty PSU Bank also up by 0.81 per cent.
On the global front, cues are positive as experts say there are reports of a US-China summit on trade negotiations in Switzerland. India announced the signing of a trade agreement with the UK. US futures are up on the US-China talks news. China has announced further policy easing; it will cut key rates by 10 points and bank reserve requirements by 50 points in a bid to boost the economy.
The reaction in other Asian markets was mixed. The Hang Seng index in Hong Kong gained 0.33 per cent, while Taiwan’s weighted index was flat but in red. South Korea’s KOSPI index rose by 0.25 per cent. However, Japan’s Nikkei 225 index was slightly down by 0.09 per cent at the time of filing this report. (ANI)
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