Markets skid in India on fresh border tension with China

By Remitbee - Aug 31, 2020

K. T. Jagannathan

The first day of the week has been quite an action-packed one on the Indian market's front. The bourses were upbeat in the morning as stocks rose robustly and the BSE Sensex breached the 40,000-mark. When news broke of fresh tension in the border between India-China, equities came crashing down, losing all gains made in early trade. Ultimately, they perished into the red. Sensex shed 2.5% to settle at 38,473.82. All 30 constituents on the index, barring two, closed in the red. The NSE Nifty also tumbled 2.6% or 305 points to 11342.5 points. India said it had foiled an attempt by Chinese troops to change the status quo on their disputed and ill-defined border in a fresh flare-up between the two countries.

Rupee, too, hit

The Indian currency, in the meanwhile, was trading at 73.29 against the U.S. dollar at 12.36 GMT, down from the previous close of 73.1399.

Gold on the rise

The day also saw the Indian government opening for subscription the final tranche of its gold bonds this year. Gold and silver prices rose in Indian markets on Monday following a positive trend in global rates. On MCX, October gold futures rose 0.3% to ₹51,600 per 10 gram to extend gains to the second day. September silver futures on MCX surged 2% to ₹67,350 per kg. In the previous session, gold had surged ₹500 per 10 gram while silver about ₹1,000 per kg. Gold prices in India had hit a record high of ₹56,200 on August 7. Since then, prices have been volatile in tandem with movement in global rates.

No flights till September 30

On an eventful day, the aviation regulator Directorate General of Civil Aviation (DGCA) extended the suspension of international flights till September 30.

The restriction shall not apply to international all-cargo operations and flights specifically allowed to operate by the DGCA like repatriation flights, charter flights, and flights under the Vande Bharat Mission, among others, the aviation watchdog said. The international scheduled flights might be allowed on select routes by the competent authority on a case- to-case-basis, it said.

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