Domestic benchmark indices rose sharply on Tuesday after coming down due to volatility in Indo-China border skirmishes with the investors opting to concentrate on firm global cues and instead overlooking the tensions at the border between the two neighboring countries on the premise that India cannot afford a war as it is already battling Coronavirus pandemic .
Early during the day, Sensex rose sharply by 793 points but went into red after the news of border dispute came in, however, it managed to overcome the losses and closed 376 points higher led by gains in financial stocks. On the other hand, Nifty index closed 100 points higher at 9,914.
As many as half of the Sensex stocks closed in the green. HDFC Bank went up by 4.16 per cent while HDFC rose by 4.03 per cent. ICICI Bank went forward by 3.60 per cent. As compared to this, cigarettes and hotel business stocks went down by 1.20 per cent.
According to market experts, investors downplayed the news of Indo-China skirmishes believing that liquidity will keep coming up in the markets as of now as India could not afford a war with the neighbouring country as it was busy fighting a pandemic.
However, the global markets were steady following the announcement of US Fed Reserve’s expanded bond-buying program, said Vinod Nair, head of research, Geojit Financial Services. Experts were also of the view that investors are on wary over the border dispute and any further tensions might adversely hit the stock prices.
The Indio-China border skirmishes, however, had its effect on Tata Motors which came down 5.7 per cent. The company’s Jaguar-Land Rover unit has significant exposure to China.
Retail major Shoppers Stop fell 5.30 per cent after it reported loss of Rs 127.22 crore for the fourth quarter ending March 31, 2002, coupled along with the factor that the pandemic has taken a toll on its business operations.
BSE Telecom was the biggest loser having dropped by 1.46 per cent, HFCL came down by 5 per cent and MTNL dipped by 4.61 per cent.
