The Indian stock markets on Friday fell amid heavy selloff, Omicron covid variant scare and weak global cues.
Domestic equity benchmarks Nifty50 and S&P BSE Sensex corrected by over one per cent each, dragged by Reliance Industries, Asian Paints and banking shares.
The Nifty50 ended over 200 points or 1.18 per cent lower to 17,196.70 as only 12 shares advanced and 38 declined on the index.
However, the sentiments were reversed towards the end of the week on growing concerns over Omicron as India reported cases,” said Vinod Nair, Head of Research at Geojit Financial Services.
This is one factor that has been causing panic not just in India, but has been pulling down markets worldwide.
“RBI’s monetary policy meeting which is scheduled to start next week will be a key market driver in the coming days as investors await MPC’s policy decision considering the uncertainty surrounding the new virus which persists in the global economy.
Another IPO of Jhunjhunwala-backed firm Star Health & Allied Insurance, which was subscribed barely 0.79 times, is also likely to be listed on the stock markets on December 10.
The FIIs pulled out more than Rs 1,648.79 crore from the cash segment of the Indian equity markets on Friday – December 3, 2021 – alone.
The performance of US markets and the Asian markets in the coming week will also decide the mood of the domestic equity markets.
Around 20 Bills, including the Cryptocurrency bill, are to be introduced in the Winter Session of the Parliament that started on November 29.
The bond offers a Gross yield of 6.87% and a tentative net of tax yield at around 6.4%.
Immediate support and resistance for Nifty 50 is 17000 and 17450, says Mohit Nigam, Head – PMS, Hem Securities.
“Index closed a week at 17197 with gains of more than one percent and formed a doji sort of candle pattern on weekly chart after two bearish candles which hint indecision in the markets.