The Indian equity markets have begun the week by opening in the red. Both NSE Nifty and BSE Sensex have opened on a weaker note as their global peers have suffered losses. The investors around the globe now await for any deals or announcements the US President may make in his visit to India.
Donal Trump, the US President, is all set to address a rally at the newly rebuilt Motera stadium in Ahmedabad. The Indian government is likely to discuss regional and bilateral issues apart from the usual topics such as trade deals, strategies, and security with the US President. It is for this reason that the Indian equity markets have gone volatile.
The global equities have continued their losses to this week. On the other hand, the gold price has shot up considerably on the back of COVID19 spreading infections outside China. The new infections are now being reported by Italy, South Korea, and countries in the Middle East.
More than 600 infections are confirmed in South Korea, and a high alert is issued after six people died due to the COVID19 infection. Italy has confirmed around 150 cases while three persons have died who had a flu-like virus. The infection has also spread to Iran, where 43 cases have been confirmed, and eight people have died.
Afghanistan, Kuwait, Turkey, Iraq, and Saudi Arabia have placed a travel ban on Iran fearing the spread of COVID19 infection. It is interesting to see as to what will happen to the export of crude oil from Iran. There are so many countries dependent on Iran for the crude and they will be significantly impacted if there are any disruptions.
In the early trade hours, Japan’s Nikkei had dropped over 1%, while Australia’s S&P/ASX 200 fell nearly 2%. New Zeland’s NZX 50 had lost over 1.5%, and KOSPI of South Korea descended more than 2%. This has caused the MSCI’s broadest index of Asia-Pacific shares outside Japan to drop down to 541.48 points. This happens to be its least since 5 February 2020.
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