What Rajnath Singh's statement in Lok Sabha means for markets: Anil Singhvi decodes it here!

Defence Minister Rajnath Singh's statement on India-China border issue is quite measured and sounds neutral for the stock markets, Zee Business Managing Editor Anil Singhvi opines. He said that Singh’s statement in Lok Sabha is not provocative but the Minister has clearly indicated that the situation has not completely reached normalcy and that the talks are still on.  

The Market Guru was decoding Singh’s statement in Parliament for viewers to inform them about the latest developments on the India-China border standoff and how they would play out for the markets. Tha Managing Editor said that the status quo still remains on the India-China tensions.

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संसद में चीन के मुद्दे पर रक्षा मंत्री के बयानों के क्या हैं मायने? समझिए अनिल सिंघवी से#IndiaChinaBorderTension #RajnathSingh #LokSabha @AnilSinghvi_ pic.twitter.com/fLw3C0h5Q4

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The Market Guru said that Singh’s statement in Lok Sabha was neutral. He said that this development is neither positive nor negative. If the tension reduces, the markets will move strongly and if it rises, the markets will see an adverse impact. 

He advised investors to keep a close watch on the situation.   

Singhvi said that it will not be correct to assume anything from here as it is still unclear if there are any major problems as of now and that the situation would not escalate any further. It also does not suggest that the situation would escalate further.   

The talks are on from both sides and even option of a military action cannot be ruled out on either side, the Managing Editor said. 

As for investors, any market direction from this situation will depend upon the events that would unfold in future. 

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Though the government has not taken an aggressive stance on the matter and wants to tackle the situation diplomatically, it is not averse to putting a strong foot and give a befitting reply, Singhvi added.