Equity benchmark Sensex plummeted over 1,100 points on Monday, tracking across-the-board losses amid a selloff in global markets as concerns over rising Omicron cases spooked investors, to end below 56,000. The 30-share index slumped 1,189.73 points or 2.09 per cent to close at 55,822.01. Similarly, the Nifty tanked 371 points or 2.18 per cent to end at 16,614.20.
Tata Steel was the top loser in the Sensex pack, sinking over 5 per cent, followed by SBI, IndusInd Bank, Bajaj Finance, HDFC Bank and NTPC. On the other hand, HUL and Dr Reddy's were the gainers.
According to experts, exploding COVID-19 cases, sustained selling by foreign institutional investors and slowing growth momentum in the developed economies have spooked markets the world over.
Manoj Dalmia, founder and director, Proficient Equities Limited, said that major Indian Indices like Sensex and Nifty have entered a correction mode, down 10% from their all-time highs. Major reasons being rising Inflation, reduction in interest rates globally, selling by FIIs and Omicron. "We may expect some further selling in the coming days, as this seems to be a short correction, buying may pickup when valuations seem reasonable. Sensex might correct till 52000-53000 range which is a support area," he said.
Ravi Singh, Vice President & Head of Research, ShareIndia, said the benchmark indices falling since last week taking cues from heavy selling in global markets on account of uncontrollable Omicron outbreak. Fear of another lockdown or restrictions will not only hurt the already reviving economies but will increase the bottlenecks pushing the economies to several years down. "This uncertainty gripping the markets leads to heavy selling by FIIs in India and other emerging markets. Another major reason behind this unabated selling is the measures taken towards policy tightening and reducing liquidity by major central banks to curb the rising inflation. Higher rates in the developed markets may force the FII outflow from emerging markets as the interest rate differential reduces, making the latter less appealing for investors. These factors all together contributed to this continuous massive market sell-off worldwide. The selling in Nifty and Sensex may continue till 16300-16000 and 54800-54500 respectively in near terms," he said.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with heavy losses. Stock exchanges in Europe too were trading deep in the red in mid-session deals. Meanwhile, international oil benchmark Brent crude tumbled 3.51 per cent to USD 70.94 per barrel.
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