North Korea fired another missile over Japan on Friday, escalating geopolitical worries that help lead the fall of global share markets. North Korea has given a direct challenge to the U.S and China after a new sanctions resolution was taken by the UNS Council to force the country to halt its nuclear and missile tests.
The United Nations has taken 9 sanctions resolution against North Korea up to now. However, major indices in the global markets are showing tepid note and are looked to be factoring in the mounting geopolitical worries.
Conversely, the Indian benchmark BSE Sensex dropped by about 60 points in the morning hours on Friday, due to profit booking in metal, power, healthcare and consumer durables stocks amid weak Asian leads with missile tensions.
The FPIs have been pulling out the funds from the Indian equities markets. FIIs have pulled out about Rs 22,300 crore in the past two months from the Indian equity markets. Even if markets are registering FII selling streak, domestic institutional investors have been lending hand. The experts are of view that a correction may take place ahead of mounting global geopolitical tensions.