COVID situation in China, global trends to guide markets this week: Analysts

According to analysts, investor sentiment remained subdued last week amid surging COVID cases in China and a few other nations.

PTI

December 25, 2022 / 14:49 IST

Representative Image

Global trends and the COVID situation in China would drive the equity markets this week, which may also see volatility amid the scheduled derivatives expiry on Thursday, said analysts.

According to analysts, investor sentiment remained subdued last week amid surging COVID cases in China and a few other nations. Also, stronger US growth data has cemented expectations of the Federal Reserve continuing with its hawkish stance, which added to the muted trend.

Last week, the Sensex tumbled 1,492.52 points or 2.43 per cent, while the Nifty tanked 462.20 points or 2.52 per cent.

"The scheduled derivatives expiry of December month contracts would keep participants busy. Besides, the performance of global indices amid the rising fear of COVID cases will further add to volatility," said Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

Movement of rupee, Brent crude oil and foreign fund trading activity would also be watched by investors during the week.

COVID-19 Vaccine

Frequently Asked Questions

How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

Show