The world almost turned over when the coronavirus pandemic hit the entire world in February in the last year 2020. At a time, when almost every industrial sector was affected by this disastrous pandemic ever, stock markets were bound to bear the brunt. Let’s have a look on Omicron effect on the stock market.
In the year then, the world has been transformed, transmuting our lives, our parsimonies, and the prosperities of our businesses—a recitation journey that is replicated in the waves of share prices. The essential trends have enhanced, propelling some businesses forward at an amazing pace while for others breezes have crooked into storms.
As the industries either stopped working for a few months and the IT sector employees were forced to work from home, the overall results got impacted. However, that phase also passed and the global economy seemed to be on the path of recovery for the next few months. However, in November 2021, South Africa found a new variant of coronavirus – Omicron. Though this variant has so far caused mild symptoms of the disease, it is necessary to know how it is going to affect the stock market in the short and long run.
The finding of this fresh variant and its spread across various countries in the world has surely paused the journey towards the post-pandemic recovery, which has worried the stock markets. Given these issues, Sensex and the Nifty faced two major collapses in recent weeks. The steps taken by countries to curtail the feast of the virus can serve as an impediment in global economic retrieval which in turn could damage the stock markets.
As different cities across the country have been reinstigating precautionary measures to contain the spread of the new coronavirus variant, investors are worried over the performance of stock markets not only in India but global too. However, one good thing this time is that this variant is not as deadly as Delta which hit the world in the second quarter of 2020.
So, as the omicron cases dipped quickly, it is expected that the same pattern would be followed in India too. So, hopefully, all the implications on the stock markets that have become visible in recent days are sure to vanish in the next few days. This is what all the top 10 stock brokers in India.
Effect on Gold Rates
As far as gold rate is concerned, the indecision about the probable consequences of this omicron variant precisely retells the markets that this pandemic is not yet done. The gold price prediction India must stay supported in this type of scenario and the topic of tapering should face a setback for quite some time.
The risk-reward ratio of the gold commodity is nearly 1:3, which is quite lucrative. Given this trend, it can be estimated that the gold prices in the global market may even go up to $1915 per ounce.
This intense rise in the price of gold has triggered speculation about bullion re-developing as investors’ haven in the scenario of the Omicron virus pandemic. According to the top brokers in India, increasing global inflation, depreciation of the rupee against the US dollar and the commercial demand for both gold and silver are already fuelling demand for gold and silver. Therefore, the gold and silver price may advance upwards if the Omicron virus incidents cease to rise further for extended periods.