New Delhi: In the early morning trading hours, the Sensex and Nifty were below their 80,000 and 24,000 marks, respectively, due to heightened military tensions between India and Pakistan. Reports have claimed Pakistani drone strikes at Jammu, Udhampur and Pathankot, but all have been neutralised.
Even though the threat of a full-blown war cannot be ruled out, market watchers and investors aren’t worried about the volatility of their investments, as similar situations earlier haven’t had much effect earlier as well.
In fact, early trends suggest some companies are actually doing quite well- Titan’s shares have risen 5% to an intra-day high of Rs.3,525 on the NSE. It has become the top gainer on the Nifty 50.
Other factors that can affect trading
Trade deal with the UK-US
India has already signed a landmark trade deal with the UK after almost 3 and a half years of negotiations. Indian businesses now have the opportunity to export a wide range of products with highly reduced tariffs. India is also in advanced stages of negotiations with the US for a trade deal that could help it get exemptions on tariffs, especially considering the tariff war with China.
US-China Trade Deal
The US is all set to announce a significant reduction in tariffs on Chinese goods as US and Chinese trade officials meet for negotiations in Switzerland. Reports suggest that the US may reduce tariffs from 145% to 45-55% on Chinese goods, while other Asian goods could see tariffs reduced by 25%
