The stock market has seen a wild swing during the pandemic. After touching recording highs in October, there appears to be a correction in benchmark indices – Nifty and Sensex.
Both indices plunged 4% percent in a single week. On Friday November 26, the Nifty ended at 17026.45 and the Sensex at 57,107.15, the lowest close in three months.
One of the main reasons that global markets fell last week was due to concerns over a new coronavirus variant detected in South Africa.
The World Health Organization (WHO) has named the variant “Omicron”. Cases linked to the new variant have been reported in a number of countries, such as Australia, Netherlands, and Denmark.
It is not yet known if the variant is resistant to the COVID-19 vaccines that are currently available.
The WHO said that the variant poses a “very high” global risk of COVID-19 infection surges that could have “severe consequences” in some areas.
Investors fear that global economic recovery could take a hit, and are closely watching the developments.
Not all gloom and doom
When the market is correcting, it can no doubt provide some good buying opportunities. Exercise caution and assess your options. Check your portfolio, do your research, follow asset allocation principles and make your investment and trading decisions accordingly.
Even with last week’s fall, the Indian stock market has seen a sharp rise in the past year. Year-to-date, the Nifty and Sensex have jumped around 30%. There was always a likelihood that some correction would take place eventually.
The market saw a small upward move and ended in the green on Monday November 29, with the Nifty closing at 17,053.95 and the Sensex at 57,260.58
So, make smart decisions and invest wisely!
Disclaimer: This content is purely for informational purposes and in no way an advice or recommendation.
