Markets plunged sharply; Sensex tanks 1,688 points & Nifty settles at 17,026

Benchmark indices ended with sharp cuts on Friday, November 26, 2021, tracking dismal global cues amid renewed COVID-19 fears over a new variant found in South Africa. The S&P BSE Sensex tumbled 1,687.94 points, or 2.87 per cent, at 57,107.15. The Nifty 50 index crashed 509.80 points, or 2.91 per cent, at 17,026.45. The Bank Nifty tanked 1,339.25, or 3.58 per cent, to 36,025.50.

In the broader markets at the BSE, the S&P BSE MidCap and BSE SmallCap declined 3.23 per cent and 2.61 per cent.

The market breadth was strong. On the BSE, 1,067 shares rose and 2,243 shares fell. On the Nifty 50 at the NSE, four shares advanced and 46 shares declined. The top four gainers on Nifty were Cipla (up 7.23 per cent), Dr Reddy's (up 3.45 per cent), Divi's Laboratories (up 2.92 per cent) and Nestle India (up 0.38 per cent). The top five losers were JSW Steel (down 7.48 per cent), Tata Motors (down 6.77 per cent), Hindalco (down 6.57 per cent), Adani Ports (down 6.22 per cent), and IndusInd Bank (down 6.19 per cent).

COVID-19 Update

WHO officials on Thursday warned of a new COVID-19 variant that has been detected in South Africa. The new variant called the B.1.1529 is reported to have a significantly high number of mutations, thus leading to alarming public health implications. The UK temporarily suspended flights from six African countries due to the variant.

Economy

Rating agency Moody's has projected that the economic growth in India will rebound strongly. In its latest report, Moody's Investors Service pegged the country's GDP growth at 9.3 per cent in 2022 financial year and 7.9 per cent in 2023. It said steady progress in Covid vaccination will support a sustained recovery in India's economic activity. Moody's said consumer demand, spending, and manufacturing activity are recovering following the easing of pandemic restrictions. It also said improved vaccination coverage has led to stabilization in consumer confidence.

British car output fell by an annual 41.4 per cent last month to its lowest October level since 1956 as the global lack of semiconductor chips and a plant closure hit the sector, according to a trade industry body. A total of 64,729 cars rolled off British production lines, data from the Society of Motor Manufacturers and Traders (SMMT) showed on Friday. The fall reflected the global supply chain problems and Honda's permanent closure of its factory in late July. Car output in the first 10 months of the year was at 721,505 vehicles, down 2.9 per cent on 2020 when sites were closed for months as the Coronavirus pandemic hit Britain.