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Indian markets suffered the biggest single day losses since early-April 2021 on Friday as a new variant of COVID-19 spooked global financial markets. Today, the start of new week is likely to be flat-to-positive. Some support will come with a private report that India’s economic recovery likely strengthened in the previous quarter, boosted by services activity that recovered after pandemic-related mobility restrictions were eased. Traders may take note of Commerce and Industry Minister Piyush Goyal’s statement that bilateral trade between India and Canada stands at $10 billion currently and there is tremendous potential to take it to much higher levels. Besides, the Reserve Bank said India’s forex exchange reserves increased by $289 million to $640.401 billion for the week ended November 19. However, weakness in global markets may cap the gains. There may be some cuatiouness as AIIMS chief Dr Randeep Guelria said the new Omicron variant of coronavirus has reportedly got over 30 mutations in the spike protein region giving it the potential to reduce the efficacy of vaccines. Meanwhile, Industry body PHDCCI has urged the GST Council to rationalise rates, stating that the current rates are not in sync with the demand creation and employment generation in the country. There will be some buzz in the banking stocks as RBI a released the rules for ownership and corporate structure of private banks in India. Infrastructure industry stocks will be in focus with the government data showing that as many as 438 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.34 lakh crore. There will be some reaction in gem, jewellery sector stocks as Commerce and Industry Minister Piyush Goyal asked the gem and jewellery industry to focus on areas like design, diversification of export product basket and lab grown diamonds with a view to boost outbound shipments and job creation. IPO of Star Health and Allied Insurance Company and Tega Industries will open for subscription this week. Star Health’s IPO will open on November 30 as the company, backed by big bull Rakesh Jhunjhunwala seeks to raise up to Rs 7,249 crore from the public issue. On the other hand, Tega Industries’ IPO is purely an offer of sale of 1,36,69,478 equity shares by promoters and an existing shareholder. The IPO will see the selling shareholders raise close to Rs 619 crore.

The US markets closed lower on Friday after a new coronavirus variant from South Africa appeared to take over the globe. Asian markets are trading mostly lower on Monday as investors tracked the developments surrounding the new coronavirus variant called Omicron.

Back home, Indian equity benchmarks suffered sharp losses on Friday tracking a sell-off across global markets. Barring pharmaceutical and healthcare stocks, all sectors slid deep into negative territory. Benchmark indices started gap-down on Dalal Street, as traders were concerned as WHO flags new Covid-19 strain. World Health Organization officials met on Thursday to discuss a new coronavirus variant circulating in South Africa and Botswana. The new variant, called B.1.1529, carries an unusually large number of mutations, Francois Balloux, director of the UCL Genetics Institute. Also, foreign fund outflow dented sentiments in the markets. Foreign portfolio investors (FPIs) remained net sellers for Rs 2300.65 crore in the Indian markets, provisional data showed on the NSE. Market participants remained cautious as a report by ICRA said that the Reserve Bank of India's revision of bad loan recognition and upgradation norms could bring a sharp spike in the non-performing assets of non-banking finance companies (NBFCs) in the country. Indices continued to languish at lower levels with deep cuts in second half of the session, as some concern came with the CBDT said that the Income Tax Department has detected huge unaccounted income after it raided some Indian companies and their associates, being controlled by a neighbouring country, in Delhi, Maharashtra and Gujarat. Traders overlooked Moody's Investors Service stating that India's rising vaccination rate, stabilizing consumer confidence, low interest rates and higher public spending underpin positive credit fundamentals for the corporate sector. It also expects India's economic growth would rebound strongly with GDP expanding 9.3 per cent in the current fiscal ending March 2022 and 7.9 per cent in 2023. Traders also paid no heed towards Niti Aayog Vice-Chairman Rajiv Kumar’s statement that the government is committed to improving the ease of doing business in the country. He stated it is now one of the commitments of this government to try and resolve and improve the ease of doing business on the ground. Finally, the BSE Sensex fell 1687.94 points or 2.87% to 57,107.15 and the CNX Nifty was down by 509.80 points or 2.91% to 17,026.45

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