Sensex, Nifty may open lower on concerns over rising Covid cases

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Benchmark equity indices Sensex and Nifty are likely to make a negative start on Thursday following mixed global cues and as another lockdown starts in Maharashtra on a continued spike in Covid cases. Investors will be eyeing the WPI data to be out later in the day. Traders will be concerned as breaking all records, India registered its biggest-ever single-day spike with 199,569 fresh cases. With this, India’s Covid tally has shot up to 14,070,890 cases. India is the 2nd worst-hit nation in terms of total Covid-19 cases. India also witnessed 1,037 fatalities due to covid-19 in a single day. The death toll from the deadly infection stands at 173,152.

There will be some cautiousness as Moody’s said that the re-imposition of virus management measures following a surge in Covid infections will dent economic activity and could hurt market and consumer sentiment, and it warned of a threat to recovery. However, it said targeted containment measures, versus last year’s complete lockdown, and rapid vaccination will soften the hit on the economy. However, some support may come later in the day as asserting that the government is committed to ensuring adequate availability of Covid-19 vaccines, Prime Minister Narendra Modi called for harnessing the combined power of community groups, political parties and NGOs in the battle against the Covid-19 pandemic.