Indian markets erased all of their morning gains on Monday and traded 0.5% lower after a report suggested provocative military moves by China on the Ladakh border.
At 11:15 a.m., the benchmark Sensex was down 0.27% to 39,361.99 points while Nifty was down 0.13% to 11,632.05 points. Previously, Sensex hit the 40,000 mark for the first time since February, gaining 1.4%, or 542 points, to 40,010 points. Nifty advanced 1.45% to 11,794 points.
New tensions arose between India and China over the weekend, with Chinese troops trying to change the status quo on the southern shore of Lake Pangong. The Indian army thwarted the move, according to a mint report.
“On the night of August 29 to 30, 2020, PLA (People’s Liberation Army) troops violated the previous consensus reached during military and diplomatic engagements during the ongoing stalemate in eastern Ladakh and led provocative military movements to change the status quo. mint report, which quotes a statement from the Indian military, said.
Investors are also awaiting the gross domestic product data expected today after 5:30 p.m. India is expected to post the largest quarterly decline in Asia’s gross domestic product (GDP) as it quickly becomes the global hotspot for coronavirus infections.
The data will likely show that GDP declined 18% in the quarter ending June compared to a year ago, according to economists polled by Bloomberg. It would be the sharpest contraction since the country started releasing quarterly figures in 1996, and is worse than any of the major Asian economies followed by Bloomberg.
According to Care Ratings, GDP is expected to contract 20.2% in the first quarter of fiscal 21.