New Covid variant spooks markets; Sensex ends 1,688-pts lower at 57,107

Fears that a new strain could fuel outbreaks in many countries, straining health systems, potentially evading vaccines and complicating efforts to reopen economies and borders, sent a wave of risk aversion across global markets Friday.

Falling in-line with all global peers, the BSE Sensex plunged 1,688 points, or 2.9 per cent, to end today’s bloodbath at 57,107 levels. The index hit a high and low of 58,255 and 56,994, respectively.
The Nifty50, too, erased 510 points, or 2.9 per cent, to close at 17,026. During the day, the index slipped below the 17,000-mark (at 16,986), a first since August this year.

The stocks witnessed their biggest intra-day fall since April 12, 2021, and also their biggest weekly fall since January 29, 2021.

The meltdown was equally bad in the broader markets, where the BSE MidCap and SmallCap indices fell 3.2 per cent and 2.6 per cent, respectively.

Exports-linked stocks such as auto and metals crumbled on the bourses with the Nifty Metal index closing 5 per cent lower and the Auto index sliding 4 per cent.

Meanwhile, the Nifty Bank index fell 3.6 per cent and the Nifty Realty index slipped 6 per cent. The Nifty Pharma index, up 1.7 per cent, was the only gainer on the NSE.

India VIX climbed 25 per cent and hit a 6-month high of 21-level.

Recovery plays like hotels, aviation-related, and multiplex stocks were some of the worst hit sectors on Friday as new Covid-19 variant dented prospects of economic recovery. Individually, Lemon Tree Hotels, Indian Hotels, Chalet Hotels, Orient Hotels, and Mahindra Holiday skid between 5-8 per cent. IndiGo, PVR, and Inox Leisure fell upto 8 per cent each.

Despite weak trend in the secondary market, Tarsons Products has managed to eke out slim listing gains. The company debuted at Rs 700 per share on the BSE, up 6 per cent against issue price of Rs 662.

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