Market View and News for Week of 29 November 2021
The correction in global equity markets as a result of growing fears of a new COVID-19 variant in South Africa and the resurgence of COVID-19 cases in several European nations, rising expectations for rate hikes in the US amid inflationary pressures, large selling by FIIs due to concerns about overvaluation and the likelihood of a Fed rate hike, and the government’s decision to repeal farm laws all contributed to market selling pressure.
The Nifty50 fell 738.35 points, or 4.16 percent, to 17,026.45, its lowest close since August 30 this year, while the BSE Sensex fell 2,528.86 points, or 4.24 percent, to 57,107.15, as selling was observed across all sectors except Pharma.
The broader markets were also under pressure, with the BSE Midcap and Smallcap indices declining 4.14 percent and 2.52 percent, respectively.
Experts believe the uneasiness will likely persist throughout the coming week as well, with a greater emphasis on the severity of the new COVID-19 version, monthly auto sales statistics, second-quarter GDP data, and FII flow.
The market is expected to remain under pressure until more clarification emerges regarding the potential risk of this new COVID-19 variation and the timeframe of the Fed raising interest rates. Continue Reading