Shares of diagnostic firms rallied as much as 6 percent on bourses as fresh Covid scare globally brought these companies in focus again. Shares of Dr. Lal PathLabs Ltd surged 6 percent, Metropolis Healthcare Ltd 3 percent and Vijaya Diagnostic Centre Ltd 3.16 percent.
The latest Omicron subvariant – BF.7 – has been found in many countries, including India, the US, the United Kingdom, Belgium, Germany, France, and Denmark. The world is cautious after a surge in Covid cases in China after Beijing abruptly dismantled its “zero-COVID” regime of lockdowns and testing that had largely kept the virus away for three years.
Reacting to these developments, shares of hospital chains Apollo Hospitals and Fortis Healthcare also rose.
In the broader market, the 30-share Sensex opened higher tracking Asian peers but erased gains as the trade progressed. The index finally closed 635 points or 1.03 percent lower at 61,067.24. Likewise, the NSE Nifty tumbled 186 points or 1.01 percent to settle at 18,199.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The near-term market construct is not favourable for equities. The rising Covid cases in the US, Korea, Brazil, and China is an area of concern. The situation is dire in China. This might impact market sentiments. Moreover, there are no near-term triggers to take the market higher. The next round of triggers will come only in January, starting with the Infy and HCL Tech results starting on 12th January.”
Dr. Lal PathLabs Ltd and Metropolis Healthcare shares have witnessed a sharp correction this year.
