India

Sensex Plummets 1500 Points: New COVID Variant To Blame?

By
OB Bureau

New Delhi: Indian stock markets fell on Friday over fears of a new COVID variant in South Africa that could be more infectious than Delta. The Sensex fell about 1500 points to 57,307 at day’s low while Nifty was struggling below 17200. “The news of the new covid variant has hammered confidence in equities, which were already under pressure as traders prepared for the Federal Reserve to start tightening its monetary policy to fend off surging inflation,” financial newspaper mint reported.

“Just as this particular tail risk was melting away into the background, scientists in South Africa have announced they have discovered a new Covid variant which could potentially be more transmissible. While the impact on human life is not yet established, the re-imposition of movement restrictions is likely to hurt economic activity. The South African Rand (ZAR) weakened past the 16 level for the first time this year,” Kristal.AI, a wealth management platform was quoted as saying in a note.

In Indian markets, autos, banks and energy stocks were the worst hit in early trading in Mumbai, with the sub-indexes down between 1.5% and 1.7%. The Nifty Pharma Index was the only sub-index bucking the trend to trade 2% higher.
Maruti was the top loser in the Sensex pack, shedding nearly 3 per cent, followed by Bajaj Finserv, Kotak Bank, HDFC, Bajaj Finance and Tata Steel. On the other hand, Dr Reddy’s and Sun Pharma were the gainers.

 

“Following to Asian trades Indian markets are reacting to the concern over a new Covid variant found in South Africa last night followed by few EU countries under full lockdown scenario. Traders in fear are selling riskier assets like equities, which could result in increased equity outflows from FII. We believe India is not in panic mode and investors should make use of this selloff as a buying opportunity. The new variant should not be a great matter of concern for us and we suggest investors with suitable risk appetite to consider and start allocating money into markets who have missed the rallies,” said Prashant Tapse, Vice President (Research) at Mehta Equities.

 

“There is fear of this new variant spreading to other countries which might again derail the global economy,” Hemang Jani, Head of Equity Strategy & Senior Group VP, Broking & Distribution, Motilal Oswal Financial Services was quoted as saying.

No case of COVID-19 variant B.1.1.529 has been reported in India so far. A new variant of the coronavirus that causes COVID-19, called B.1.1.529 has been identified in South Africa, with officials there saying it’s of concern, news agency ANI reported quoting sources.

 

OB Bureau

Recent Posts

Soon After Parliament’s Winter Session Begins, Rajya Sabha Adjourned Amid Opposition’s Ruckus Over Adani Issue

New Delhi: The Winter Session of Parliament commenced on Monday (Nov 25). But both houses…

November 25, 2024

Bangladeshi Girl ‘Trafficking’ Case In Odisha: Couple Arrested For Forcing Her Into Prostitution

Cuttack: After rescuing a minor Bangladeshi girl, Madhupatna Police in Odisha’s Cuttack city have arrested…

November 25, 2024

2nd Maharashtra Tigress Zeenat Released Into Core Area Of Similipal In Odisha

Baripada: Ten days after being put in a soft enclosure inside Similipal Tiger Reserve (STR)…

November 25, 2024

Odisha GDP Suspends Jonk Police Station IIC For Dereliction Of Duty

Nuapada: Inspector In-Charge (IIC) of Jonk police station in Odisha’s Nuapada district, Gurudev Karmi, has…

November 25, 2024

IPL Auction: KKR Break Bank For Venkatesh On Lucrative Day For Indian Players; Check Top Buys

Mumbai: The first day of the IPL mega player auction at Jeddah threw up several…

November 24, 2024

Odisha Govt Hands Over Case Of Attack On Dharmasala MLA To Crime Branch

Bhubaneswar: The Odisha government has handed over the investigation into the attack on Dhramasala MLA…

November 24, 2024

Commissionerate Police Issues Traffic Advisory During Winter Session Of Odisha Assembly; Details Here

Bhubaneswar: The Commissionerate of Police on Sunday issued an advisory for movement of vehicular traffic…

November 24, 2024

Elon Musk Proposal: Fire US Federal Employees Who Want To Work From Home

New York: Now that President-elect Donald Trump has tasked Elon Musk with the responsibility of co-heading…

November 24, 2024