Sensex breaks over 1,100 points; Nifty tank 371 points 16,600 . close over
Equity benchmark Sensex fell over 1,100 points on Monday, tracking losses across the board amid a sell-off in global markets as concerns over rising Omicron affairs prompted investors to end below 56,000. The 30-share index closed 1,189.73 points or 2.09 per cent lower at 55,822.01. Similarly, the Nifty closed at 16,614.20, down 371 points or 2.18 per cent.
Tata Steel was the top loser in the Sensex pack, falling over 5 per cent, followed by SBI, IndusInd Bank, Bajaj Finance, HDFC Bank and NTPC. On the other hand, HUL and Dr Reddy’s ended in gains.
According to experts, the explosion in COVID-19 cases, sustained selling by foreign institutional investors and slow growth in developed economies have shaken the markets across the world.
Manoj Dalmiya, Founder and Director, Proficient Equities Ltd, said major Indian indices like Sensex and Nifty have entered correction mode, down 10% from their all-time highs. Rising inflation, lower interest rates globally, selling by FIIs and Omicron are the main reasons for this. He said, “We can expect some more selling in the coming days as it looks to be a minor correction, when valuations look fair then buying may increase. Sensex may correct towards 52000-53000 range which is a support.” area.”
ShareIndia Vice President and Head of Research Ravi Singh said that benchmark indices have declined since last week, taking cues from heavy selling in global markets due to uncontrollable Omicron outbreak. The fear of another lockdown or restrictions will not only hurt already revived economies, but will add to the bottlenecks that have pushed economies down for several years. “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 policy tightening and liquidity reduction by major central banks to check rising inflation. Higher rates in developed markets may force outflow of FIIs from emerging markets as the interest rate differential narrows, making the latter less attractive to investors. This continued massive market sell-off across the board. Selling in Nifty and Sensex may continue till 16300. -16000 and 54800-54500 respectively in close terms,” he said.
Elsewhere in Asia, shares ended with heavy losses in Shanghai, Hong Kong, Tokyo and Seoul. Stock exchanges in Europe were also trading in deep red in mid-session deals. Meanwhile, international oil benchmark Brent crude fell 3.51 per cent to $70.94 a barrel.
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