Emphasis on adopting a wait-and-see policy in equities

MUMBAI: The new Covid variant found in South Africa has swayed the minds of investors in most of the global markets. Analysts are advising that investors should adopt a wait-and-see policy in the current scenario and not rush to buy stocks at a lower price.

As winter approaches rapidly in western countries, there is a risk of a resurgence of corona, which is dangerous for the market, analyst Christopher Wood noted in his weekly note.

The new variant could lead to re-lockdowns in various nations, which could hamper economic recovery. Many Asian markets, including India, were hit hard today.

We will keep an eye on the trend in December, when corona cases have risen sharply in the US, Germany, France, Russia and the UK.

The period till the end of December is very dangerous as the movement of people will increase due to the festive season in December. An increase in the movement of people could lead to a third wave of Corona in India, according to a report released by a stockbroking house.

The Sensex is currently down more than 3% from its 52-week high on October 16, 2021. Further reductions cannot be ruled out given the events.

According to another analyst, the market reacted sharply on Friday. Adopting a wait-and-see policy for the next few days will keep an eye on where the situation is heading, he said.