After another day of indecisive trades, brought by the threat of escalation in the border dispute with China, Indian benchmark indices ended slightly negative

BSE Sensex and Nifty 50 failed to hold intraday recovery amid India-China border tensions in Wednesday’s volatile session. Sensex plunged 430 points from day’s high to end at 33,508, while the Nifty 50 index gave up the crucial 9,900-mark and settled at 9,881. Apart from this, a sharp spike in coronavirus cases in India also swayed investor sentiment. “After another day of indecisive trades, brought by the threat of escalation in the border dispute with China, Indian benchmark indices ended slightly negative. FIIs have also been net sellers in equity this week which have impacted the markets. Volatility to remain,” said Vinod Nair, Head of Research at Geojit Financial Services.

Top BSE Sensex laggards: Kotak Mahindra Bank, Power Grid, ITC, M&M, HDFC and Asian Paints were among top Sensex losers. While, HDFC, Kotak Mahindra Bank, HDFC Bank, ITC and LT contributed the most to the indices’ losses today. Among gainers were Maruti Suzuki, Bharti Airtel, Axis Bank, IndusInd Bank, SBI, HUL and Bajaj Finance.

Financial stocks drag: Nifty Financial Service index was down nearly one per cent, dragged by ICICI Lombard General Insurance Company, Kotak Mahindra Bank and Bajaj Finserv. On the flip side, Nifty Auto index settled 0.81 per cent higher led by gains in Motherson Sumi Systems, Maruti Suzuki and Bharat Forge.

Broader markets: Broader markets outperformed equity benchmarks. S&P BSE MidCap ended 40 points or 0.32 per cent higher at 12,541, while S&P BSE SmallCap finished trade at 11,933, up 84 points or 0.71 per cent.

India-China tensions escalate: In a violent face-off between India and China in Eastern Ladakh’s Galwan Valley led to 20 casualties on the Indian side. Prime Minister Narendra Modi assured to protect India’s territorial integrity. “India wants peace but it is capable to give a befitting reply if instigated,” PM Modi said.

Market outlook: “The recent tussle with China has derailed the momentum and the market is now awaiting some fresh trigger. We reiterate our cautious view on the index and suggest focusing more on stock selection in the meanwhile,” said Ajit Mishra, VP – Research, Religare Broking Ltd.