Sensex plunges 1,688 points as new virus variant spooks global markets

1 month ago 27

MUMBAI: A new variant of Covid-19 virus, first found in Botswana which can possibly resist available vaccines, pushed global investors onto the backfoot, that in turn led to a sell-off in risky assets. As a result, investors on Dalal Street too pressed the panic button, leading to a 1,688-point slide in the sensex — the biggest single-session loss in over seven months — which closed at 57,107. For a brief while in late trades, the index had even entered the sub-57k mark, its first foray in that territory in nearly three months.
Friday’s 2.9% slide in the sensex was also induced by the recent weakness seen in markets globally. For the last few days, there was a new worry for investors globally after US announced that retail inflation in the world’s largest economy was at a 30-year high. This also led investors to speculate that the US Federal Reserve, its central bank, may go in for a rate hike early 2022, much ahead of the anticipated move in the second half of the year.

In India, too, investors are cautious because wholesale inflation is now hovering in the double-digit region for the seventh consecutive month.
According to Joseph Thomas, head of research, Emkay Wealth Management, Friday’s movement in the domestic market has been synchronous with the movements in other Asian markets, and quickly followed by Europe at opening.

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