Will stock markets give a thumbs up to vaccination for 18+ from May 1?
Market may give vaccine manufacturers, pharma companies may get a boost
The government has decided to allow vaccination against COVID-19 for everyone who is 18 years and above from May 1. The decision was taken in a meeting chaired by PM Narendra Modi today and was announced as part of the liberalised and accelerated Phase-3 strategy of the ‘Vaccination Drive’.
He said, “This will boost the immunity of younger people who are more productive in the ecosystem and hence is a very welcome development. ”
On the sectors and stocks which will benefit the most from the news, he said, “Markets will further cheer the vaccine manufacturers as this will boost the overall consumption of vaccines significantly despite the fact that these would be one time sales for them as on date.”
Mudit Goyal, Technical Analyst at SMC Global, on the other hand believes that given the weak technical chart structure of the markets currently, the Nifty may test 14,100- 13,900 on the downside over the next 2-3 sessions.
As for a strategy for investors he said, “Investors must avoid fresh buying and exit from current positions. As for sectors only IT and Pharma look positive for now. We may also see a major correction on banks and NBFC stocks”
Rajesh Satpute believes that while the news is positive, but it has come a bit late. The situation on the rising Covid cases has become very concerning and so the news may not be a game-changer for the markets.
He said, “While we may see a relief rally on the positive development and the Nifty may also climb levels of 14,550 in some short term positive swings but the overall trend of the markets still remains weak and therefore I believe it is a ‘Sell on Rise’ market.”