UK’s mutant covid spread – a problem for India’s equity markets
United Kingdom (UK) Health Secretary Matt Hancock warnings of how difficult it is to keep a highly infectious mutant strain of the novel coronavirus under control until vaccinations are rolled out and the possibility of placing London under a lockdown for months, has sent shivers down to the spine of India’s stock markets.
Both the key benchmark indices have nearly third of a percent on Monday as the countries across Europe and beyond began closing their borders to travelers from the UK on Sunday.
Many Indian companies from the automobile, IT, Pharmaceuticals, etc are expected to suffer from the lockdown in the UK and European region.
Mastek, Tata Elxsi, TCS, Coforge, Tech Mahindra, Infosys, Wipro, Oracle Financial, Suven Pharma, Aurobindo Pharma, Glenmark, Dr Reddy’s, Torrent Pharma, Balkrishna Industries, Tata Motors, Tata Steel, SRF, UPL, Tata Chemicals, Tata Communications, Crisil, etc are likely to witness the fall in their earnings due to their dependence as well as heavy exposure in this region.
The European Union set up a crisis management meeting, a day after Britain’s prime minister, Boris Johnson, ordered a wholesale lockdown on London and surrounding areas, citing concerns of a new fast-spreading variant of the coronavirus.
Train stations in London on Saturday night filled with crowds of people scrambling to leave the city to escape the new restrictions, which went into effect at midnight and effectively quarantined the capital and other areas from the rest of the country, the harshest measures to be taken since the country’s first lockdown in March.
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