According to analysts, stock markets will be guided by updates on the new COVID 19 variant that sent equities plummeting globally on Friday, auto sales numbers and macroeconomic data announcements in the coming week.
A WHO committee has named the new strain 'Omicron' and designated it as a highly transmissible variant of concern, the same category that comprises the Delta variant.
Omicron, which was first reported by the WHO from South Africa on November 24 and has also been detected in Botswana, Hong Kong, Belgium and Israel. Travel bans and curbs on southern African countries have been announced in an attempt to stem Omicron's spread.
Santosh Meena, Head of Research, Swastika Investmart Ltd told PTI that COVID related developments will be key triggers for the market, where they will be interested in the efficacy ratios of various vaccines against a new variant of COVID.
The Sensex went up 1,688 points on Friday amid concerns about the new coronavirus variant that has resulted in a rout in global markets.
According to Yesha Shah, Head of Equity Research at Samco Securities, Dalal Street will look towards macros for hints to move the needle in the broader markets after Q2 result season. Inflation will be the centre of all news in the next two weeks, since the RBI MPC meeting is scheduled in December. The November monthly auto sales number can cause some movement this week. PMI numbers for the manufacturing and services sectors would also be tracked, according to macroeconomic data.
In the near term, equity markets will closely follow the impact of new COVID variant, inflation data and Central Bank policies, said Shrikant Chouhan, Head of Equity Research Retail Kotak Securities Ltd.
The last week, the BSE benchmark plunged 2,528. It was 86 points or 4.24 per cent.