Indian equity benchmark -- Nifty -- ended Monday’s trading session near day’s low point, dragged by losses in Bank and IT stocks. After making slightly positive start, soon index slipped into red terrain, amid rising geopolitical crisis. China announced sanctions on five US defence-related companies in response to sanctions on Chinese companies and arm sales to Taiwan. Traders remained concerned as a report by economic think tank GTRI said the increasing Red Sea crisis may impact trade as it is expected to push shipping costs by up to 60 per cent and insurance premium by 20 per cent.
In late afternoon session, index magnified its losses and ended near day’s low point, as traders were cautious with India Ratings and Research Chief Economist Devendra Kumar Pant’s statement that the Indian economy is facing the challenge of lower consumption growth as high inflation is impacting people in the lower income bracket. He said although the country's economy is now resilient enough to deal with the dual shocks of below-normal monsoon and high global oil prices, the challenge is to bring down inflation so that people can have more disposable income in their hands.
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