Analysts of the macroeconomic data announcements and the auto sales numbers said that the new coronavirus variant that has caused global stock markets to tumble would also impact the stock markets. The new covid variant has been titled Omicron by the WHO panel. It has also been classed as a highly infectious mutation of concern, the same classification as the Delta virus.
Omicron has been found in nations such as Botswana, Belgium, Hong Kong, and Israel since the first discovery on November 24 in South Africa. Following the discovery of the novel strain, many countries, particularly in southern Africa, have instituted travel restrictions in order to prevent Omicron from spreading. For the foreseeable future, anything related to covid will be an important market catalyst, since the market is eager to learn the efficacy and the safety of various vaccines against Omicron. At the same time restrictions-related news worldwide will also cause uncertainty,” Swastika Investment Ltd’s Head of Research, Santosh Meena, stated.
Fears about a new coronavirus type sent the Sensex plummeting 1,688 points on Friday, causing a global market meltdown. Yesha Shah, Samco Securities’ Head of Equity Research, stated, “Following the second quarter’s results, Dalal Street will turn to macros for clues on how to shift the needle in substantial rise. Since the RBI MPC meeting is slated for December, inflation will be at the forefront of every news in the following two weeks. In addition, the monthly auto sales report for November could be a catalyst for some action this week.” Purchasing Managers’ Index (PMI) figures for the economy would be monitored among macroeconomic data.
Shrikant Chouhan, Kotak Securities Ltd.’s Head of Equity Research says that “In the near future the stock markets will be carefully monitoring the effects of the new covid variant along with the Central Bank initiatives.” The BSE stock index dropped 2,528.86 points, or 4.24 percent, in the previous week.