“Equity markets have plunged almost 2 per cent amid the emergence of a new, highly mutated Coronavirus (COVID-19) variant. The EU announced a temporary ban of flights from South Africa and few EU countries are already under full lockdown scenario.
Mumabi:
With discovery of the new coronavirus variant rattling equity markets that were already reeling under pressure on account of concerns around stretched valuations and policy normalisation, Investors’ wealth tumbled Rs 4.48 trillion during day trade on Friday with the BSE benchmark plummeting 1,488 points tracking weak global trends.
The 30-share benchmark index tumbled 1,488.01 points during the day to 57,307.08.
The market capitalisation of BSE-listed tanked Rs 4,48,223.31 crore to Rs 2,61,18,730.57 crore during the day.
The India Vix, a gauge for market volatility, surged 25 per cent to end at 20.8. The volatility wiped off Rs 7.4 lakh crore of investor wealth on Friday and close to Rs 11 trillion during the week.
The Dow dragged Wall Street’s main indexes lower on Friday, with travel, bank and commodity-linked stocks bearing the brunt of a selloff triggered by the discovery of a new and possibly vaccine-resistant coronavirus variant.
“Equity markets have plunged almost 2 per cent amid the emergence of a new, highly mutated Coronavirus (COVID-19) variant. The EU announced a temporary ban of flights from South Africa and few EU countries are already under full lockdown scenario.
“Thus, there is fear of this new variant spreading to other countries which might again derail the global economy,” said Hemang Jani, Head of Equity Strategy & Senior Group VP, Broking & Distribution, Motilal Oswal Financial Services.
Tata Steel, HDFC, IndusInd Bank and Maruti were the biggest laggards, tanking up to 4.2 per cent.
The BSE midcap and smallcap indices were trading up to 2 per cent lower.