Tag: omicron

The IMF (International Monetary Fund) has cut India's economic growth forecast to 9 percent (from the earlier forecast of 9.5%) for the current fiscal year ending March 31, on concerns over the impact of a spread of a new variant of coronavirus on business activity and mobility. In its latest update of World Economic Outlook yesterday(25th Jan.2022), the international financial institution, which had in October last year projected a 9.5 percent GDP growth for India, put the forecast for the next fiscal FY23 (April 2022 to March 2023) at 7.1 percent. The Indian economy had contracted by 7.3 percent in the 2020-21 fiscal year. Read more

India is in the emerging stage of the third wave of COVID-19 pandemic with a surge in Omicron cases amid an increase in the test positivity rate, more than 37,000 cases on Tuesday (the highest in 118 days), and an uptick in hospitalisation. The number of Omicron cases in the country detected till Tuesday morning reached 1,892. Experts have warned in a country with a huge population such as India, a small proportion of severe Omicron cases could put the health infrastructure to the test. More restrictions such as weekend curfews halved capacity in private offices, and work from home in government offices was imposed in Delhi while the Mumbai authorities warned of lockdown measures if the number of daily cases crossed 20,000. Read more

In the month of November that saw the omicron variant of coronavirus induce fresh concerns about risks to the recovery, India’s economy was expanding at a steady pace. All eight high-frequency indicators tracked by Bloomberg News were steady last month, keeping the needle on a dial measuring the so-called ‘Animal Spirits’ unchanged at 5. The level was arrived at by using the three-month weighted average readings to smooth out volatility in the single-month scores. But the pace of activity based on indicators from demand for services to factory output-faces threats from rising cases of the omicron variant first detected in South Africa toward the end of last month. While the Reserve Bank of India this month kept its full-year growth forecast steady at 9.5%, Governor Shaktikanta Das sounded cautious, saying “it is too premature to gauge” the effects of the new strain at this stage. Read more

Indian benchmark indices opened lower today (20th Dec.2021) as investors continue to track the spread of the Omicron Covid variant. The World Health Organization recently warned that the number of cases is doubling in 1.5 to 3 days in areas with community spread. That apart, Asian stocks dropped in early trading today after China slashed its benchmark lending rate for the first time in more than one-and-a-half years. The move likely indicates policymakers' concerns around the slowing economic growth in China, which worried investors. The BSE Sensex quoted 653 points lower at 56,358 level while the Nifty50 broke below the 16,800-mark at 16,795, down 190 points. Both the indices were down over 1 percent each. In the broader markets, the BSE MidCap and SmallCap indices fell 2 percent each. Read more

Worries ahead of the US Fed outcome and increasing warning calls by the WHO against the Omicron coronavirus variant are keeping investors on the sidelines. After starting with mild gains, the benchmark indices quickly slipped into the negative zone today(15th Dec.2021). The BSE Sensex was down 295 points at 57,821 levels, while the Nifty50 was down 79 points at 17,250. All sectors, barring the metal index, were in the red. The Fed is the first among the four major global central banks, set to meet this week, to discuss whether to guard against inflation and end the current era of low-interest rates and central bank asset purchases or sit tight given the economic threat posed by the new variant. Against this backdrop, the BSE Sensex started at 58,144 level, up 27 points. The NSE Nifty, too, was little changed at 17,335.25, up 10 points.M&M (up 2 percent) was the top Sensex gainer, followed by ITC (1 percent), Axis Bank, Power Grid, NTPC, and HDFC Bank. Read more

The BSE Sensex declined 383 points, or 0.66 percent, to 57,900 levels in early deals, dragged by Bajaj Finance, HDFC, IndusInd Bank, Infosys, and Kotak Bank in today's (14th Dec.2021) early deals in the background of WHO's grim statement on the 'Omicron' coronavirus variant, coupled with a downward revision of growth forecast by the Asian Development Bank (ADB). The NSE Nifty, on the other hand, gave up 17,300-mark and was down 97 points. In the broader markets, the BSE MidCap and SmallCap indices dipped up to 0.5 percent. Among individual stocks, shares of Shriram Transport Finance dropped over 3 percent after the Group announced a restructuring plan. As part of the plan, the Shriram Group, Shriram Capital, and Shriram City Union Finance will merge with Shriram Transport Finance Company. Those of Greenlam, on the contrary, were up 6 percent as the company plans to invest Rs 950 crore in 2-3 years as part of its Capex plan. Read more

The Indian benchmark indices started firm today(8th December 2021), ahead of the RBI's monetary policy outcome. The six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, is likely to maintain key interest rates for a ninth straight meeting, retaining an accommodative stance amid the threat surrounding the Omicron coronavirus variant. The S&P BSE Sensex was up 642 points, or 1.11 percent, at 58,276 levels in early deals while the Nifty50 index was back above the 17,350-mark. The 50-pack index gained 192 points or 1.12 percent. 49 of the 50 Nifty constituents were trading in the green, led by ONGC (up 2.5 percent), Infosys, Wipro, ICICI Bank, Reliance Industries, Indian Oil Corporation, and Bharti Airtel. The only loser was Divis Labs, down 0.15 percent. Read more

The BSE benchmark index, the Sensex, dipped to a low of 56,383 in early deals today(29th Nov.2021), and then rebounded and surged to a high of 57,627 - up 1,244 points from the day's low. The BSE index, which, was up over 500 points at the highs of the day eventually ended with a minor gain of 154 points at 57,261. The NSE Nifty cracked to a low of 16,782 in opening deals and then pulled back to a high of 17,161. The Nifty 50 finally settled at 17,054, up 28 points. Benchmark indices the Nifty and Sensex have fallen as much as 8 percent from their all-time highs last month. The high valuation was already a hurdle for the market and now, the new risk emerging on the Covid-19 front has added fuel to the fire. It is a fact that despite the pullback, India remains among the top performers in CY21, with the Nifty up 21 percent in CY21 YTD versus a flattish performance of the MSCI EM Index. But a correction in the market was overdue. Read more

Global equity markets, including India, have seen a sharp sell-off over the past few sessions as the Omicron Covid variant reignited concerns of sporadic lockdowns and limit movement of goods and people across key economies. Analysts, however, believe that the markets have overreacted to the development, and a market falls from here on, if any, should be used to add to positions from a medium-to-long-term perspective. The omicron variant was labeled a ‘variant of concern’ by the World Health Organization (WHO) last Friday that sent global equity markets into a tailspin. As a result, the BSE Sensex and Nifty tanked nearly 3 percent each in a broad-based sell-off. Read more

The Indian frontline indices extended their losses in today's(29th Nov.2021) deals amid weakness in Asian markets as investors continue to monitor developments surrounding the recently discovered omicron, Covid variant. The BSE Sensex tumbled 439 points, or 0.77 percent, to 56,668 levels and the Nifty50 slipped below 16900-mark at 16,863, down 163 points. In the broader markets, the BSE MidCap and SmallCap indices fell up to 3 percent.