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Below are Quote on 3rd wave in India & Investors strategy by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd 

Can 3rd wave of Covid in India end the bull market?

India is in a declining trend in terms of the daily new cases in India but as of now, India is doing the highest number of daily covid cases in the world of around 41500 cases per day. Out of these, 2 states Maharashtra and Kerala contribute nearly about 50% of new cases in India. India Daily new cases have come down from 4.14 lakhs a day in 1st week of May to 0.4 lakhs a day in 2nd week of July 2021. It seems that we are near the end of the 2nd covid wave in India.

If we take a look at the rise in cases in the United Kingdom (UK) it seems like the 3rd wave has picked up very quickly in UK despite having 50% fully vaccinated. Uk having more than 31000 daily new cases which has increased from 2200 cases in May 2021 due to new covid variants causing the 3rd wave in the UK.

In India also 3rd covid is inevitable and likely to start in August or September 2021 despite partial vaccination of 22% in India. We suggest investors be cautious on markets as 3rd covid wave will come very quickly in India and we may see some sector specific impact in the stock market.

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