By Puneet Sikka
Investing.com — had a topsy-turvy day today, as the index lost all the gains that it made during the day to close 0.33% lower. The growing India-China border tensions played an important role in this decline, but a report from Fitch mentioning that India’s GDP could contract by a massive 11.8% in FY21 dampened investors’ sentiments. It shows that it will not be easy for India to recover its economy after a 23.9% decline in GDP that it experienced in the June ending quarter on a year-over-year basis. had an even bigger decline of 0.87% today as AXIS Bank Ltd (NS:) and SBI (NS:) saw declines of 3.56% and 2.24% respectively.
Talking about the India-China border situation, External Affairs Minister S Jaishankar described the border situation as “very serious.” In a fresh sign of escalation, India and China also accused each other of firing into the air on the border of western Himalayas.
Despite these negative news, Reliance Industries (NS:) was in limelight today after it jumped by almost 1% on the media report that Facebook (NASDAQ:) and private equity fund KKR has initiated negotiations with Reliance for investments in its retail business. Facebook and KKR were among the investors that have already pumped $20 billion in Reliance Jio. However, the stake sale could only happen after Reliance’s acquisition of Kishore Biyani’s Future Group’s retail business is complete.
Tomorrow could be another painful day for Indian markets as the US market crash looks imminent as of now. are down by 1% while the tech-heavy looks set for another plunge today and is currently down by more than 3%. Growing US-China tensions have also some role to play in the US markets decline. US President Donald Trump launched a fresh broadside against China, promising a “decoupling” of the US economy from the Chinese one if he is re-elected in November.