After receiving a beating in early morning trade session, the Indian indices pared its losses to a larger extent but remained in the red zone as Sino-US trade tension still looms over the global stock markets. The BSE Sensex that once crashed around 675 points before the Union Minister Amit Shah could introduce the Jammu and Kashmir Reorganisation Bill in the parliament finally ended 418 points down at 36,699 levels while the Nifty-50 index went down 134 points after closing at 10,862 levels. The Bank Nifty index crashed 556 points and closed at 27,648 levels. Venky's (India), JaiprakashAssociates, Magma Fincorp, Indian Bank and Bombay Dyeing were among the top gaining stocks while eClerx Services, NBCC (India), DHFL and Coffee Day Enterprise or CCD stocks were the top losing shares in the intraday trade.

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Speaking on the current market scenario Prakash Pandey, Head of Research at Fairwealth Securities said, "The Narendra Modi government's move to scrap article 370 in J&K by proposing the J&K Reorganisation Bill has gone down well among the stock market investors and in coming three-four trade sessions, we can expect around 300-400 points recovery at Nifty. But, before making such recovery Nifty will first make a low and then start scaling as we witnessed post-Pulwama air strikes." He went on to add that market has a cue that post-J&K Reorganisation Bill, the government expenditure in the state defense which is to the tune of around Rs 1 lakh crore would go down and hence the fiscal deficit is expected get under control. However, all depends upon the performance of the Chinese currency's performance in coming days as the Chinese market is a lead indicator for the emerging markets and current US-China standoff is affecting not just China but the entire emerging market including India.

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Hailing Amit Shah and Modi 2.0 Government for the J&K move Rajiv Singh, CEO at Karvy Stock Broking said, "The government has displayed strong political will and decisiveness to take difficult decisions, in order to fulfill one of its poll promises related to J&K. We hope that the government will display similar commitment while acting on the economy to improve both its short term as well as long term prospects. We expect that Government will take similar bold moves in case of addressing economic slowdown, recent taxation measures which have dampened sentiment and go ahead with difficult legislations on land reforms, labour reforms and privatisation of PSUs." He said that while the move on "one nation, one law" has a short term negative impact on the market, there are larger reasons for the decline today.  Asian markets have declined sharply in the morning, largely because of the Chinese currency depreciating past the important mark of 7 to the Dollar, S&P 500 futures imply a 1 per cent decline at the time of writing. However, we believe that the downside is now limited and the Nifty will stay in the range of 10,500 to 11,200 in the near term.

Energy stocks received the heavy beating in the intraday trade as the BSE Energy index went down around 2.5 per cent. Energy major Reliance Industries share price crashed near 3.5 per cent, shares of Adani Gas went down near 2.6 per cent, IOCL and Jindal Drilling & Industries corrected near 2.1 per cent, Mangalore Refinery And Petrochemicals stocks corrected to the tune of 9.5 per cent, Oil And Natural Gas Corporation scrip went off 2.1 per cent while Oil India scrip went down near 2.9 per cent.

Banking stocks witnessed heavy selloff after an escalation in the Sino-US trade tension. Banking major YES Bank share price crashed 8.27 per cent, shaes of RBL Bank dipped 4.59 per cent, Kotak Mahindra Bank scrip went down 3.09 per cent, ICICI Bank was down 1.89 per cent, HDFC Bank counter went off 1.82 per cent, City Union Bank stocks went down 2.41 per cent while Axis Bank nosedived 1.9 per cent.

Among Asian markets, the Japanese Nikkei 225 index crashed 1.77 per cent, South Korean Kospi nosedived 2.56 per cent, Hang Seng dipped 2.86 per cent while Shanghai market went off 1.62 per cent.