Sentiment soured on Monday with the S&P BSE Sensex plummeting 1,800 points in intraday trading on weak global signals. Fears of a new strain of coronavirus that has threatened the UK. The S&P BSE Sensex ended the day at 1,407 points, or 3 percent, lower at 45,553 levels. Nifty50, on the other hand, closed 432 points, or 3.1 percent, down 13,328 levels.
UK UK Health Secretary Matt Hancock has reportedly warned that the new strain of coronavirus is ‘out of control’ and suggested that parts of England will be stuck in the new and higher level of restrictions until a vaccine is implemented.
Home sales accelerated as European stock indices opened weak. The DAX fell 1.70 percent, while the CAC 40 lost 2.45 percent. Meanwhile, in London, the FTSE 100 fell 1.68 percent.
Meanwhile, India has suspended all flights from the UK to India until December 31. “This suspension will take effect from 11:59 p.m. on December 22, 2020. As a result, flights from India to the UK will be temporarily suspended during that period.” the Civil Aviation Ministry said in a statement on Twitter on December 21.
This is how the leading market experts have interpreted the developments.
Rabobank International
The fact that this new strain has also been detected in other countries (reportedly detected by the Netherlands in early December) highlights the threat that the UK’s necessarily draconian response may be replicated elsewhere as long as at the very least , borders are closed to isolate countries of this strain is likely to remain a feature of some in the future.
We have argued previously that the market will not be able to maintain a focus on a vaccine-related recovery and ignore short-term concerns about the intensification of the second wave of infections. As such, we present our expectations that the safe-haven curves would suffer a tactically bullish flattening, as investors are forced to face the escalating fallout from the virus long before they can appreciate a vaccine-driven return to normal. .
Jyotivardhan Jaipuria, Founder, Valentis Advisors
The markets have been bullish for quite some time and the slightest negative news has triggered a sharp correction. The new Covid-19 strain is perhaps the trigger they were looking to correct. That said, the new strain calls into question the efficacy of the vaccines developed so far. This is what worries the markets. Anyone can guess how much the markets will correct from now on, but a 10 percent correction from the recent high will be healthy. While the corrections will be strong, the recovery can also be just as fast if things are brought under control soon.
Ambareesh Baliga, an independent market expert
The new Covid-19 strain is a huge concern for markets now. It has already led to closures in major UK / European cities and compounded the risk of them closing again at a time when most shopping malls were opening. If the market drops another 3-4 percent from here, there could be chaos and more panic selling could occur.
S Ranganathan, Head of Research, LKP Securities
The new variant of the novel coronavirus in the UK spooked the markets as we witnessed heavy sales in the afternoon trading. While the street was bracing for a correction this week after a strong bull move, the sheer speed of the slide in the broader markets took bulls by surprise as virtually none of the key components of the indices were in the green. today.
Dear reader,
Business Standard has always strived to provide up-to-date information and comments on developments that are of interest to you and that have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our determination and commitment to these ideals. Even during these difficult times arising from Covid-19, we remain committed to keeping you informed and up-to-date with credible news, authoritative opinions, and incisive commentary on relevant current affairs.
However, we have a request.
As we fight the economic impact of the pandemic, we need your support even more so that we can continue to bring you more quality content. Our subscription model has received an encouraging response from many of you, who have subscribed to our content online. Increased subscription to our online content can only help us achieve our goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital editor
.
