Re-open theme stocks have come a full circle this year. They began 2022 on a strong note as India went back to normalcy but are taking a beating now as COVID-19 cases surge across the globe.
On December 23, stocks like Interglobe Aviation, Indian Hotels, Lemon Tree, Devyani International, Jubilant Foodworks, PVR and Inox fell between 2-5 percent as India stepped up measures to curb a fresh wave of infections as large gatherings are expected during Christmas and new year celebrations.
Follow our live blog for all the market action
Omicron's BF.7, the COVID-19 variant said to be driving the fresh surge of infections in China, were detected in India, the Union Health Ministry sources said on December 21. At least four cases linked to the new variant have been confirmed but all of them have recovered, they said.
The government has issued fresh guidelines for international fliers arriving in India. The aviation ministry has been asked to ensure that at least 2 percent of passengers in every flight are tested for coronavirus.
Amid rising COVID fears, Indian markets tumbled for the fourth consecutive day. The biggest losers were re-open theme stocks that had begun seeing a turnaround in fortunes.
Positive developments like Interglobe Aviation's 3-day winter sale and Domino’s operator Jubilant Foodworks's 20-minute pizza delivery launch also failed to cheer investors.
"The high market volatility of the last few days is likely to continue. There is an element of overreaction in the market to the Covid news," Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
"Investors need to be careful of the sharp intra-day volatility seen in the last few sessions due to growing uncertainty over rising Covid cases in China and recessionary fears in key economies," Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities said.
At 11.30 am on December 23, the Sensex was down 542.74 points at 60,283 and the Nifty 166.50 points at 17,960.80.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.