The Indian stock market crashed approx 3% wiping out 6.59 Lakh Crore of Investors wealth on Monday 21'Dec as the news of a new strain of Corona Virus broke out. As per reports, this new strain is believed to be around 70% more infectious than the previously known strains. With this news, several countries restricted air travel from UK and that Panic impacted the global markets immediately. Lately,United Kingdom has been experiencing a series of incidents that has led its people into a state of panic. A new strain of COVID-19 has been discovered by British scientists. While the researchers and medical professionals are tirelessly working towards establishing the cause of the mutation, it has been reported that the new variant also poses great risks to children, who were previously considered to be less susceptible to the coronavirus infection.
Although the Govt. of India issued a statement today (22'Dec) that the new strain of Coronavirus has not been found in India yet. Indian govt. has already banned flights from the UK till 31st Dec from 23rd Dec. As per the latest reports, all passengers coming from UK are getting tested and sent to official isolation in case of a positive report.
On Monday 21'Dec the Indian stock market crashed with this fear of fresh covid spread. Several experts said this correction was due for a long and this news of new strain has only fueled that up. Most of the experts have termed this positive for the market for a longer bullish run for the long term and believe there might be still room for correction up to 2% and the market will remain volatile for the rest of this year. As several nations have stopped their flights for UK and some other nations might follow the same path this will again impact the price of crude oil and that respective sector. Along with that several companies having a large chunk of their business from Europe and UK might also feel the heat. Although we don't see much impact in the tourism sector as it was yet to receive and pace from UK region so far.
The market will remain volatile and will offer some lucrative deals so we suggest our readers to look for those opportunities and consider taking long-term positions while keeping eye on the daily developments. Though most of the experts have taken this positively, we suggest our readers to keep their eyes open because a severe breakdown might impact economic activity again.
Let us know in the comment section if you're bullish or bearish on this current market.
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