Despite diminishing concerns over the potency of the Omicron variety, Indian bluechip indices were trading higher on Wednesday, as traders continued to load their shopping carts. The RBI policy meeting was a non-event, with the committee maintaining the same rates and position as before.
Top epidemiologist Dr. Antony Fauci’s statement that the Omicron variation is unlikely to be more severe than the Delta variant, according to one analyst, allays market concerns about the Omicron variant’s economic impact.
“In the short term, FII selling is a threat to IT and banking, but in the long run, they are resilient.” “Telecom leaders appear to be well positioned for growth in the near duopoly market,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
MARKET DRIVING FACTORS
The pharmaceutical industry is well-prepared: On Tuesday, GSK reported that their COVID-19 antibody-based therapy, which was developed in conjunction with Vir Biotechnology in the United States, is effective against all mutations of the new Omicron coronavirus type. A South African study published on Tuesday found that booster doses of the COVID-19 vaccine, created by Pfizer Inc and BioNTech, may help protect against Omicron infection.
Yields fall a smidgeon: After two days of advances fuelled by positive news regarding Omicron, the benchmark 10-year Treasury yield slipped a smidgeon on Wednesday. It was last trading at 1.4614 percent, up from Friday’s low of 1.335 percent, when Omicron fears first arose, but still significantly behind its pre-Omicron high of 1.693 percent in late November. The two-year yield, which climbs in lockstep with interest rates, was 0.6892 percent, only a smidgeon below its recent peak.
Markets that offer greater options
The broader market indices were trading higher in morning session, surpassing their headline peers. The Nifty Smallcap index increased by 1.33 percent, while the Nifty Midcap index increased by 0.87 percent. The Nifty 500, the NSE’s most widely traded index, was up 1%.
SpiceJet, MMTC, BEML, Whirlpool of India, Torrent Power, and Hindustan Copper were among the winners, while SpiceJet, MMTC, BEML, Vodafone Idea, Tanla Platforms, Trident, and Intellect Design were among the losers in the space.
Markets all across the globe
Outside of Japan, MSCI’s broadest index of Asia-Pacific equities increased by 0.3 percent, while the Nikkei gained 1%. Futures for the S&P 500 in the United States increased by 0.25 percent.
MSCI’s all-country world index gained 2.1 percent on Tuesday, the highest percentage advance since November 2020, thanks to positive newsflow reports. Oil prices have also risen by more than 3%.