BackMarkets erase opening gains; trade flat
India recorded fresh covid-19 cases at 412,000 in 24 hours, which is the highest so far and continued rise in death counts remain a matter of concern for markets
PremiumIndian markets on Thursday erased all the morning gains and were trading marginally lower amid concerns of continued surge in covid cases.
Earlier in opening, Sensex gained nearly 240 points while Nifty climbed 80 points. At 11 am, Sensex rose 0.096% to 48,724.30 points while Nifty rose 0.21% to 14,649 points.
India recorded fresh covid-19 cases at 412,000 in 24 hours, which is the highest so far and continued rise in death counts remain a matter of concern for markets. While several states had started showing signs of reversal in daily caseload, sharp rise in daily cases again raises concerns, analysts say.
On Wednesday the Reserve Bank of India in its unscheduled speech announced measures to cushion the fallout of the second wave, via incentivizing lending to most-affected borrowers, alongside extension of previous relief measures.
"Going forward, markets are likely to remain range bound along with increase in volatility. Resurgence of the second covid wave has dented sentiments and weakened FY22E earnings visibility. While the market is currently looking beyond the short-term impact, if the pandemic doesn’t subside soon, it opens up downside risks," said Siddhartha Khemka, head-retail research, Motilal Oswal Financial.
"4QFY21 earning season is progressing well so far, but earnings downgrades are now rising, given the widespread restrictions in various states, which is hurting mobility and economic recovery. Thus, the interplay of resurgence in covid-19 cases and the pace of vaccination would decide the trajectory of economic recovery going forward," Khemka added.
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