Surging Omicron cases across world triggers heavy selloff; Monday’s slump lowest since Aug 23
A man watches stock prices on a digital board outside BSE on Monday
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.
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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. 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. Experts said exploding Covid-19 cases, sustained selling by foreign institutional investors and slowing growth momentum in the developed economies have spooked markets the world over.
“India has been undergoing a phase of consolidation in the last two months. Currently, selloff 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.
“We feel that we are reaching the last phase of this consolidation in terms of price correction. Some pockets have become fair, however the overall market is still trading at the upper-hand which will continue to affect the performance of broad market, in the short-term,” he added. Ajit Mishra, VP–Research, Religare Broking, said markets reacted to the news of a sharp jump in the Covid cases globally, which may result in lockdowns.
55,822
BSE Sensex on Monday
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