Will stock markets give a thumbs up to vaccination for 18+ from May 1?

All eyes are on how the stock markets will react to the positive news as over the last two weeks, equity indices have been marred by volatility and sharp down turns caused by  news flow around the rapid surge in Covid-19 cases and the increasing lockdowns being announced in parts of the country.

Both the benchmarks, Sensex and Nifty had ended sharply lower today dragged by heavy selling across the board. On the one hand the Nifty slipped 258 points to end the day at 14,359 while the Sensex crashed 883 points to close at 47,949, seeing a drop of 2%.

Money9 spoke to market experts to find out what should investors expect from the markets on the

positive development.

Avinash Gorakshakar, Director Research at ProfitMart Securities believes the markets will react very positively to the news.

He said, “This will boost the immunity of younger people who are more productive in the ecosystem and hence is a very welcome development. ”

On the sectors and stocks which will benefit the most from the news, he said, “Markets will further cheer the vaccine manufacturers as this will boost the overall consumption of vaccines significantly despite the fact that these would be one time sales for them as on date.”

Mudit Goyal, Technical Analyst at SMC Global, on the other hand believes that given the weak technical chart structure of the markets currently, the Nifty may test 14,100- 13,900 on the downside over the next 2-3 sessions.

As for a strategy for investors he said, “Investors must avoid fresh buying and exit from current positions. As for sectors only IT and Pharma look positive for now. We may also see a major correction on banks and NBFC stocks”