CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Stocks end lower: markets spooked as Omicron reaches India

By Anoop Agrawal

10:59, 3 December 2021

India and representative index
Indian stocks end weaker – Photo: Shutterstock

India’s benchmark equity indices ended today’s trading lower, reversing early gains as investors chose to book profits amid weak market undertones.

Power Grid Corp of India topped the list of today’s fallers on the index with a 3.9% fall to INR206.1, followed by heavyweight Reliance Industries, which reversed opening gains to close 3% lower at INR2,408.5. Kotak Mahindra Bank gave up earlier gains to close 2.5% lower for a second day at INR1,914.2.

Fertiliser maker UPL Limited rose the most today, clocking 2% gains, followed by oil retailer Bharat Petroleum which was up 1.8%.

The National Stock Exchange’s 50-share Nifty50 index closed 1.18% weaker at 17,196.7 points, while the S&P BSE 30-share Sensex contracted by 1.31% to close at 57,696.4 points.

The advance-decline ratio on the NSE stood at 977-858.

Bearish candles

“Index closed a week at 17197 with gains of more than one percent and formed a doji sort of candle pattern on weekly chart after two bearish candles which hint indecision in the markets. Good demand zone for nifty is already formed near 17100-17000 zone and holding above said levels. One can expect index to march towards 17500-17600 zone in near term but if failed to hold then more profit-booking can push index to much lower levels, immediate hurdle is coming near 17300-17440 zone,” said Rohit Singre, a senior technical analyst at LKP Securities in Mumbai

The markets have been weighed down after two cases of the Omicron variant of the Covid-19 virus were detected in the southern state of Karnataka on Thursday. Investors have chosen to book profits, or avoid taking fresh positions, due to the evolving situation regarding the new variant.

“Markets remained cautious during the week with marginal gains. The focus seems to be shifting from premium Indian equities to relatively cheaper markets. The result season was mostly divided with companies showing strong signs of demand growth but at the same time, high raw material and input cost adding pressure on margins. Companies have begun passing on price hikes to consumers to save their margins,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities Ltd.

Specific stocks

Sun Pharma shares gave up early gains even after the company announced that it had signed an agreement with Biomodifying LLC granting Sun Pharma an exclusive licence for Biomodifying’s intellectual property, along with antibodies developed for multiple uses including for cancer. Sun Pharma ended 1.7% lower at INR753.

NVDA

477.93 Price
-0.860% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.23

VODl

0.72 Price
-0.490% 1D Chg, %
Long position overnight fee -0.0253%
Short position overnight fee 0.0033%
Overnight fee time 22:00 (UTC)
Spread 0.0125

COIN

127.75 Price
+6.400% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.12

AMZN

147.02 Price
-0.540% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.27

Biocon Pharma, a subsidiary of Biocon, received approval of its ANDA (Abbreviated New Drug Application) for mycophenolic acid from the US Food and Drug Adminstration, expanding the company’s portfolio of complex drug products. Shares in Biocon Pharma ended 0.1% lower at INR367.

Two-wheeler maker Hero MotoCorp said it has expanded operations in Argentina along with Gilera Motors. The company’s shares ended little changed at INR2,462.85.

“Following a positive opening, benchmark indices gave up all gains led by losses in heavyweights in anticipation of the RBI meet next week. Meanwhile, investors were also cautious after India reported Omicron cases,” said Vinod Nair, head of research at Geojit Financial Services. 

“However, global equities traded with slight gains, recovering from yesterday’s broad-based sell-off led by fears on new Covid variant and Fed chair’s comment on the bond-buying program. RBI’s monetary policy meeting will be a key market driver as investors await MPC’s policy decision, which is broadly expected to hold an accommodative stance considering the uncertainty surrounding the new variant,” Nair continued.

Markets await data

Investors across currency and stock markets are awaiting the US non-farm payrolls report, which will set the course for the coming week. Markets are already reeling under pressure after the US Federal Reserve earlier this week said that its tapering programme may end sooner than had been anticipated.

“This week Omicron woes kept the USDINR spot afloat, and now the focus is on tonight’s US non-farm payrolls report. It is a big data to digest before the Fed policy as it will help gauge the state of US employment and will carry some implication on this policy outcome,” Emkay Global Financial Services said in a note.

“A big NFP figure will push USDINR higher, along with the safe-haven demand, if Omicron concerns rise. But next week we have RBI policy, and a likely tightening by raising the reverse repo rate may limit any rise in USDINR spot. So we expect USDINR spot to continue oscillating in between 74.70-75.50. As long as it trades above 74.70, it will continue the uptrend,” the note added.

Read more: Indian stock markets end higher on robust economic data 

 

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading