Indian shares subdued as China border tensions, financials weigh

China accused Indian troops of violating a bilateral agreement

  
People walk past at a screen displaying India's Finance Minister Nirmala Sitharaman before the budget, on a facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, February 1, 2020. Image used for illustrative purpose.

People walk past at a screen displaying India's Finance Minister Nirmala Sitharaman before the budget, on a facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, February 1, 2020. Image used for illustrative purpose.

REUTERS/Francis Mascarenhas

BENGALURU: Indian shares opened flat on Tuesday, pressured by financial stocks, as renewed tensions at the country's disputed border with China eclipsed upbeat global sentiment.

The blue-chip NSE Nifty 50 index was down 0.09% at 11,344.70, while the benchmark S&P BSE Sensex also edged 0.09% lower at 38,383.48 by 0348 GMT.

China accused Indian troops of violating a bilateral agreement and firing warning shots in the air during a confrontation with Chinese personnel on the disputed border on Monday. 

The Nifty bank index was down 0.49%, with ICICI Bank Ltd and Kotak Mahindra Bank Ltd among the top drags in the Nifty.

The Reserve Bank of India on Monday outlined guidelines for restructuring loans for Indian banks, as the sector braces for a surge in bad loans amid the COVID-19 crisis.

Meanwhile, weapons manufacturer Bharat Dynamics dropped as much as 13.1% after the Indian government said it would sell a stake in the company at a discount. 

(Reporting by Anuron Kumar Mitra in Bengaluru, Editing by Sherry Jacob-Phillips) ((AnuronKumar.Mitra@thomsonreuters.com; +91 99863 58469;))

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