New Delhi, December 23: As there is a heavy downfall in the major Sensex indexes amidst the news of a new strain of Corona emerging our economic expert Yamini Aggarwal takes you through how it has impacted the market. "Due to the new strain of Covid found in Britain, a lockdown has been imposed which has also led to disruptions in the regular flights. It is expected that new strain can affect the economic activities in other parts of Europe as well. The fresh lockdown has impacted the investors' sentiments due to the anticipated uncertainty," she adds.
According to her "After the Pfizer vaccine got a nod there was optimism in the people because of which we saw that the Foreign Institutional Investors investing heavily after November 5 into Indian equities in which there was high rise." COVID-19 New Strain: Indian Health Ministry Issues SOPs, Travellers Who Arrived from UK Between November 25 And December 8 to be Contacted; Check Full List of SOPs Here.
She notes "The anticipation that lockdown may be extended to other parts of the world with the efficacy of the vaccine under the new circumstances still being debated it has led to the dampening of mood among the investors."
She adds "The velocity of the recent fall in index is not surprising as the market was riding along with the wave of the vaccine but with a new strain of Corona it has adversely affected the market sentiments. The earlier encouraging reports on vaccine had boosted the market and it was expected to reach the pre-covid level."
She points that "In November the FIIs was close to Rs 70,000 crores and in December so far it was Rs 42,000 crores. So on a per-day basis, there was Rs 3,700 crores investment which was lifting the market. So the new strain of corona is bound to affect the market in the future as well."
The stock exchange has witnessed the highest fall globally as well in India. The recent fall by three percent in the Indian Stock Exchange has been the steepest since May this year.