Markets plummet as Omicron enters India
MUMBAI: Equity benchmark Sensex plunged 765 points on Friday, dragged by losses in index-heavyweights Reliance Industries, HDFC twins and Kotak Bank, after India reported its first case of the Omicron variant of the coronavirus. The Centre on Thursday said two cases of Omicron have been detected in Karnataka.
Both the patients are men, aged 66 and 46 years, with mild symptoms. Severe symptoms have not been noted, an official said. The 30-share BSE index ended 764.83 points or 1.31% lower at 57,696.46. Similarly, the broader NSE Nifty tanked 204.95 points or 1.18% to 17,196.70.
Powergrid was the top loser in the Sensex pack, shedding over 4%, followed by Reliance Industries, Asian Paints, Kotak Bank, Tech Mahindra and Bharti Airtel.
On the other hand, L&T, Indusind Bank, Tata Steel and Ultratech Cement were among the gainers.
According to Gaurav Garg, Head of Research, Capitalvia Global Research, traders are concerned with the uncertainty surrounding the Omicron variant.
Meanwhile, European stocks and U.S. equity futures wavered
Friday as traders awaited a key jobs report that could stoke expectations for a quicker reduction in Federal Reserve stimulus.
S&P 500 and Nasdaq 100 contracts fluctuated after dip-buyers Thursday fueled the S&P 500’s best climb since mid-october, a sign that some of the worst fears about the omicron virus strain are dissipating.
The Stoxx Europe 600 index eased an early advance before turning higher, buoyed by a bounce in energy shares and European Central Bank President Christine Lagarde’s assurance that a rate hike next year is “unlikely.” Most Asian benchmarks rose, but in Hong Kong, a gauge of Chinese tech firms slid. Investors were spooked by ridehailing giant Didi Global Inc.’s plan to delist from the U.S. under pressure from Beijing, and growing scrutiny of Chinese firms traded in America.
Treasury yields ticked lower, erasing some of Tuesday’s jump after Fed officials laid out the case for a faster removal of policy support amid high inflation. The dollar was steady.
Crude advanced after the OPEC+ proceeded with an output hike but left room for quick adjustments due to a cloudy outlook.
The international oil benchmark Brent crude surged 2.38% to $71.32 per barrel.