Sensex and Nifty, on Wednesday, Close Nearly 0.3% Lower Due to Political Tensions

The Indian stock markets witnessed high volatility on Wednesday as a result of a clash between the Sino-Indian soldiers at the Ladakh border. The geopolitical tensions have caused the Indian benchmark indices, S&P BSE Sensex and NSE Nifty 50, to mark nearly 0.3% lower.

The S&P BSE Sensex tanked 0.29% or 97 points to close the day at 33,507.02 points. The index played between the 33,933.66 and 33,332.96 levels today. The share price of Maruti Suzuki gained 4.05%, which is the most in the index. It was followed by IndusInd Bank, Axis Bank, and Bharti Airtel. 

The losses in the Sensex were led by the shares of Power Grid, ITC, M&M, and HDFC; they lost around 2%. The investor sentiment was understandably down today on the back of the rising COVID-19 infections across the world, and the showdown between the Chinese and Indian soldiers in the Galwan valley made the situation only worse. 

Also Read: Sensex Zooms Nearly 1000 Points, Nifty Above 9,300 Levels

The broader markets on the Bombay Stock Exchange (BSE) performed better than the benchmark indices. The S&P BSE SmallCap Index ended the day in the green. It gained 0.71% or 83.91 points to end the day at 11,933.53 points. The S&P BSE MidCap Index zoomed 40.09 points or 0.32% to wrap up Wednesday at 12,541.38 points. 

The National Stock Exchange (NSE) Nifty 50 ended the day at 9,881.15 points while it opened at 9,876.70 points. It dropped as much as 0.33% or 33 points to mark the close of Wednesday. Nifty 50 recorded its intra-day high at the 10,003.60 levels, while its lowest was 9,833.80 points. India VIX, the volatility gauge, shot up 1.13% to touch 33.36 degrees.

The sectoral indices on the NSE had a mixed day. The NSE Nifty Financial Services index collapsed the most (down by 0.8%). The NSE Nifty Media and the NSE Nifty Auto indices ended the day 1.7% and 0.8% higher respectively.

For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in.

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