Sensex, Nifty tank as new coronavirus variant scares investors

At 10 am, the benchmark Sensex was down 1.4% or 819 points at 57,976, while the broader Nifty 50 was down 1.4% or 241 points at 17,294.

Elsewhere in Asia, Japan’s Nikkei fell 2.9%, with the Hang Seng falling 2.2% amid growing concern over a coronavirus variant first discovered in South Africa.

Analysts said concerns about the new version and questions about the vaccines’ ability to prevent the virus led to a fall in the markets.

In Europe, countries are expanding booster vaccinations and tightening restrictions as pandemic-related deaths in Germany passed the 100,000 mark.

Markets have been under pressure amid volatility in the domestic market as Q2 earnings failed to surprise on the positive side, with rising input costs weighing on investor sentiments. Input cost inflation has affected margins and profitability especially of consumer and manufacturing companies, despite steady growth in volumes and sales.

“Markets are likely to continue firming on weak global cues, consistent FII sell-off and premium valuations. In the absence of any fresh triggers and weak sentiments, investors will wait for fundamentals to come up with valuations”, said Siddhartha. he said. Khemka, Head – Retail Research, Motilal Oswal Financial Services