Indian shares end lower as Omicron cases surge

Data Patterns (India)

24/12/2021 10:36

(Adds closing levels, analyst comment)
    BENGALURU, Dec 24 (Reuters) - Indian shares snapped a
three-day rally on Friday as surging cases of the Omicron
coronavirus variant globally weighed on investor sentiment
despite signs that it was less likely to lead to
hospitalisation.
    The NSE Nifty 50 index  .NSEI  closed 0.4% lower at
17,003.75 and the benchmark S&P BSE Sensex  .BSESN  fell 0.33%
to 57,124.31. 
    But the indexes eked out slim gains for the week as metal
and IT stocks helped the market recover from Monday's 3% plunge.
    Omicron continued its advance across the world, with health
experts warning the battle against the strain was far from over
despite two drugmakers saying their vaccines protected against
it and encouraging signs on hospitalisation rates from Britain
and South Africa.  urn:newsml:reuters.com:*:nL8N2T816M
    "Domestic markets will continue to keep track of the Omicron
variant spread," said Shrikant Chouhan, head of equity research
(retail), Kotak Securities.
    Indian Prime Minister Narendra Modi on Thursday asked chiefs
of states to ramp up oxygen supplies and strengthen health
infrastructure to contain a possible surge in cases ahead of the
festive season.  urn:newsml:reuters.com:*:nL1N2T80GQ
    "With market volatility, defensive sectors (like IT) saw
interest from the market participants," Chouhan said. 
    The information technology (IT) index  .NIFTYIT  was the
lone sectoral gainer on Friday, rising 1%. It added 3% for the
week to record its fourth straight weekly gain.
    The deal pipeline for IT services companies continues to be
strong, which is reflected in investor confidence in those
companies, said Ajit Mishra, vice president research, Religare
Broking Ltd.
    Shares of defence solutions provider Data Patterns (India)
 DATP.NS  made a strong market debut, ending up 29%.

 (Reporting by Nallur Sethuraman in Bengaluru; Editing by Devika
Syamnath)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))