Equity indices plunged to over four-month lows on Monday as concerns over surging Omicron cases across the world jolted investors, sparking a heavy selloff in global markets.
Relentless selling by foreign investors amid a hawkish tilt by central banks also weighed on sentiment, traders said. The 30-share BSE Sensex slumped 1,189.73 points or 2.90 per cent to end at 55,822.01 — its lowest since August 23 this year.
On similar lines, the NSE Nifty tanked 371 points or 2.18 per cent to end at 16,614.20. The market capitalisation of all BSE-listed companies tumbled by Rs 6.79 lakh crore to stand at Rs 2,52,57,581.05 crore. Omicron remains one of the biggest issues for markets and has significantly clouded the outlook moving into year-end, Deutsche Bank said.
“India has been undergoing a phase of consolidation in the last two months. The current sell-off is due to rapid rise in FIIs selling triggered by hawkish world central banks’ policy, cautious view on Indian market due to high valuation compared to peers and drop in retail inflows,” said Vinod Nair, Head of Research at Geojit Financial Services.
