Market Outlook: Macroeconomic Data, Further Updates to COVID Variants to Boost Stocks This Week

New Delhi: Stock markets this week will be mostly fueled by updates related to the new variant of the coronavirus that brought stocks down around the world on Friday, announcements of macroeconomic data and auto sales figures, said analysts.

A World Health Organization panel named the new COVID strain “Omicron” and classified it as a highly transmissible variant of concern, the same category that includes the Delta variant.

The potentially more contagious Omicron was first reported to the WHO in South Africa on November 24 and has also been identified in Botswana, Belgium, Hong Kong and Israel. Many countries have introduced travel bans and restrictions on southern African countries in an attempt to contain the spread of Omicron.

New COVID variant, FII behavior as well as macro numbers will be key factors driving the market this week. COVID related developments will remain key triggers for the market where the market will remain keenly interested in knowing the efficiency ratios of various vaccines against a new variant of COVID as news related to restrictions around the world will also cause volatility, ”said Santosh Meena, head of research, Swastika Investmart Ltd.

The Sensex pitted 1,688 points on Friday amid concerns over the new variant of the coronavirus which has also led to the rout in global markets.

Yesha Shah, Head of Equity Research, Samco Securities, said, “After the second quarter earnings season, Dalal Street will look to macros for clues to move the needle in broader markets. With inflation being a key factor, will be the focus of all news in the next couple of weeks as the RBI MPC meeting is scheduled for December. November’s monthly auto sales count can be a trigger to generate some movement this week. “

Among macroeconomic data, PMI figures for the manufacturing and service sectors would also be tracked.

“In the near term, the stock markets will closely monitor the impact of the new COVID variant, inflation data and central bank policies,” said Shrikant Chouhan, head of equity research (retail) , Kotak Securities Ltd.

Over the past week, the BSE benchmark has plunged 2,528.86 points or 4.24 percent.

Source link

About Clara Barnard

Clara Barnard

Check Also

Inflation factor for increased sales tax revenue

KILLEEN, Texas (KWTX) – Sales tax revenue is on the rise across central Texas by …