MUMBAI: Money managers expect the domestic equity market to react positively on Tuesday after the government Monday late evening announced that Covid-19 vaccines will be made available to everyone above the age of 18 years from May 1.
“The concerns around economic recovery getting delayed is taken care of.this will arrest the downfall and the market can look at retracing its steps to record highs,” said Daljit Singh Kohli, chief investment officer at Stockaxis.com.
The second wave of Covid-19 infections in the country had triggered fears that India’s economic recovery will be hamstrung due to the return of localized lockdowns in major states like Maharashtra, Delhi, Rajasthan, Madhya Pradesh and Karnataka. The benchmark indices had corrected close to 6 per cent from record highs hit in mid-February.
Midcap, smallcap investors singed as COVID sparks downgrade fears
SECTIONS
Share
Synopsis
Reacting to the fear, Nifty Midcap100 and Nifty Smallcap 100 index nosedived 6 per cent each, with nearly all of their respective constituents in the red.
Getty Images
The possibility of renewed lockdowns appeared to have caught investors on the wrong foot, said dealers, as several stop losses on midcap and smallcap counters got triggered on Monday.
Related
MUMBAI: The rose-tinted glasses of midcap and smallcap investors are broken now, as the sharply accelerating second Covid-19 wave in the country is spooking investors. The possibility of renewed lockdowns across the country has triggered fears of material downgrades in corporate earnings.