MARKET UPDATE:‘Black Friday’;Sensex shaved-off over 1,400 points in intra-day deals while Nifty lost over 400 points
Published On: Friday, November 26, 2021 | By: Team KnowMyStock
It was a horrible ‘Black Friday’ for the Indian markets that saw an across-the-board sell-off. The S&P BSE Sensex shaved off over 1,400 points in intra-day deals. Its counterpart on the National Stock Exchange, the Nifty50 index, lost over 400 points. The negative sentiment today(26th Nov.2021) in the Indian markets was on account of weak global cues. Most Asian markets were a sea of red with Japan’s Nikkei down 2 percent and Straits Times slipping nearly one percent. Shanghai Composite, Kospi, and Taiwan were down 0.2-0.4 percent, each. The US markets, however, were shut on account of the Thanksgiving holiday. This weak sentiment across Asian markets was triggered by fears of a sooner-than-expected rate hike by the US Federal Reserve (US Fed). Investors and traders, according to analysts, now expect the US central bank to raise rates faster on the back of the recently released FOMC minutes.
The second concern for the markets is the new Covid variant ‘Botswana’ or ‘Nu’ that has been detected in South Africa. According to reports, the World Health Organization (WHO) is convening an emergency meeting Friday to discuss this potentially rapidly spreading Covid strain.
The B1.1.529 Covid variant suddenly surging across Southern Africa has mutations that could potentially mean higher transmissibility and the ability to evade vaccine defences, reports suggest. Scientists are worried in equal measure, and are talking about it as potentially the ‘next Delta’.
Meanwhile, the Government of India has asked all states and Union Territories to conduct rigorous screening and testing of all travellers coming from or transiting through South Africa, Hong Kong and Botswana, where a new Covid-19 variant of serious public health implications has been reported.
The third reason for the Indian markets to be nervous amid these developments is the inflation scare led by firm commodity prices, including crude oil. Most global brokerages such as UBS, BofA Securities, Goldman Sachs, Nomura and Morgan Stanley have been sounding caution on the valuation of the Indian markets.
Tags: Indian markets saw an across-the-board sell-off Sensex Nifty rate hike by the US Federal Reserve new Covid variant ‘Botswana’ inflation scare
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