Indian shares snap 3-day winning streak as Omicron cases surge globally

Data Patterns (India)

24/12/2021 05:30

(Adds analyst quote, details, updates shares)
    By Sethuraman N R
    BENGALURU, Dec 24 (Reuters) - Indian shares snapped their
three-day rally on Friday as a continued global surge in the
Omicron coronavirus variant kept investors on the edge, though
two studies showed it was less severe than the Delta variant.
    The NSE Nifty 50 index  .NSEI  was down 0.90% at 17,203 by
0510 GMT and the benchmark S&P BSE Sensex  .BSESN  fell 0.80% to
56,858.94. The indexes were on track for a second week of
losses, down about 0.2%. 
    Omicron advanced across the world, with health experts
warning the battle against the COVID-19 variant was far from
over despite two drugmakers saying their vaccines protected
against it and studies showing it carries a lower risk of
hospitalisation.  urn:newsml:reuters.com:*:nL8N2T816M
    "The overall trend is still negative ... We need to have
more clarity over the new variant and its impact. We are seeing
different trends in different countries," said Ajit Mishra, vice
president Research, Religare Broking Ltd.
    Markets are trading in line with global peers, but it will
be difficult to extend the rebound despite rising COVID-19
cases, he added.  
    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 of Omicron cases
ahead of the festive season.  urn:newsml:reuters.com:*:nL1N2T80GQ
    The information technology (IT) index  .NIFTYIT  was the
lone sectoral gainer, rising 0.7%. The index, up 2.5% so far
this week, is on track to gain for a fourth straight week. 
    The deal pipeline for IT services companies continue to be
strong, which is reflecting in investor confidence on those
companies, said Mishra.
    Meanwhile, shares of defence solutions provider Data
Patterns (India)  DATP.NS  made a strong debut in the Mumbai
market, listing at a premium of 48%.

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