Equity indices volatile as geopolitical tensions escalate
Jun 16, 2020
Mumbai (Maharashtra) [India], June 16 : Equity benchmark indices erased morning gains but closed in the green on Tuesday as fresh tensions between India and China escalated.
The market slipped into red for some time after the Indian Army said an officer and two soldiers were killed in Galwan Valley of eastern Ladakh during a violent face-off with the Chinese troops.
However, the BSE S&P Sensex closed 376 points or 1.13 per cent higher at 33,605 while the Nifty 50 was 100 points or 1.02 per cent up at 9,914.
Sectoral indices at the National Stock Exchange were mixed with Nifty metal gaining by 1.4 per cent and financial service by 2.7 per cent. But Nifty realty, pharma, PSU bank and FMCG closed in the red.
Among stocks, private lenders witnessed heavy buying with HDFC Bank gaining by 4.1 per cent, ICICI Bank by 3.4 per cent and Kotak Mahindra Bank by 1.7 per cent. Home loan lender HDFC was up by 3.9 per cent.
The other prominent gainers were JSW Steel and Hindalco which moved up by 2.8 per cent and 2.7 per cent respectively besides UPL, Infosys and Vedanta.
However, Tata Motors tumbled by 5.8 per cent after the auto major reported a loss of Rs 9,864 crore during the quarter ended March. Bharti Infratel, IndusInd Bank, Axis Bank and Tech Mahindra too traded in the negative territory.
Meanwhile, Asian stocks moved higher after the US Fed tweaked its bond-buying programme to support financial markets through the coronavirus pandemic.
Shares in China rose by 1.4 per cent while Japan's Nikkei jumped by 4.88 per cent and Hong Kong's Hang Seng index by 2.39 per cent. South Korea's Kospi too spurted by 5.28 per cent.
