In seven-and-half months, the Indian share market sunk like a stone and hit rock bottom on Black Friday. It occurred after the news of a new coronavirus variant broke headlines all over the globe. Perhaps the people who are anti-vaccination will restrain from economic activity in the coming months.
The fear of the new strain is fueling concerns as the variant has spread in more than twelve countries. As per the WHO report, it is highly infective and has multiple mutations. As a result, The National Stock Exchange Nifty50 index nosedived -0.10 percent, ending at 17,005.80 points, while the S&P BSE Sensex plunged 0.014 percent to close at 57,112.15 points. Nifty Realty index, a basket of 10 property stocks including the nation’s largest homebuilder DLF, plummeted 1.57 percent. Nifty Metal index, which comprises of 15 metal and mining industry stocks also plunged by 0.43 percent.
According to the stock market experts, the downside of the breakout will reflect in the stock market this week. Additionally, the Indian rupee suffered due to this. It was trading 0.013 percent lower than the US dollar. The ThincRedBlu’s Chief Executive, Gaurav Udani, warned that the downtrend may continue today.
He added, “The next support range for the Nifty is between 16,700-16,800 points from here we can see a bounce back to 17,200 points. It is advisable to the traders to exit long positions on every pull back. Traders must refrain from initiating any new long positions till the bullish is confirmed on the Nifty.”
The top gainers recorded of the National Stock Exchange included Hindalco advancing at 428.90, Reliance advancing at 2,464.50 at 2.15 percent change. Top losers included Adani Ports, Hero MotoCorp, ONGC, Nestle India, and HDFC whose stocks decreased by -2.43, -2.38, -2.01, -1.98, and -1.80 percent respectively.
Earlier this Friday, Israel’s health ministry stated that it has logged one case of a new COVID-19 variant. According to an AFP report published on Mint’s website, the new variant was first identified in South Africa. On 25 November, Reuters published that the scientists in South Africa have informed the world that they had detected a heavily mutated coronavirus variant.