Sensex breaks over 600 points, Nifty around 17,000. Why are the markets falling?

Auto, banking and financial stocks declined. IndusInd Bank and Titan fell over 3 per cent each.

The benchmark Sensex opened at 57,901.14 points, up 58,021.63 points against the previous day’s close. However, selling pressure gripped the market from early trade itself and the Sensex fell by 57,122.56 points at around 11.50 am, which is 1.34 per cent or 778.58 points lower than its previous day’s close.

Why are the markets falling?

Ravi Singhal, Vice Chairman, GCL Securities, said, “The decline in the Indian stock market can be attributed to two major reasons – the growing case of Omicron in India and abroad and the Fed’s tough stance on interest rate hikes. was under pressure and subsequent Fed’s announcement to stop buying bonds till March 2022 has triggered a sell-off. NSE Nifty is currently trading in a broad range of 16,786 to 17,385, and the overall market sentiment is negative. Hence, We can expect NSE Nifty to move towards 16,786 levels. In the next fortnight. Unless a trend reversal in Indian markets, sales should continue to rise.”

omicron concern

Rapidly spreading tensions have worried the markets. Omicron, the ‘form of concern’, is on track to become the leading strain of coronavirus worldwide, as feared by health experts and world leaders. Since its detection in South Africa three weeks ago, cases of Omicron have already been reported in 77 countries.

India’s omicron count neared 100 (97 to be exact) on Friday after 10 more cases of the new variant of the coronavirus were reported from the national capital Delhi.

bank of england

The Bank of England on Thursday became the first major central bank in the world to raise interest rates as the pandemic hit the global economy and warned of high inflation.

Traders believe that the central bank is planning to tackle rising inflation by ending the era of ultra-cheap cash.

Hawkish Path

With prices rising at the fastest pace in four decades, the Fed this week vowed to end its massive bond-buying program by March and prompt a series of interest rate hikes to bring them under control. set on a more rigorous path. Run through 2023.

weak global cues

Three of Wall Street’s main indexes retreated on Thursday as investors took stock of the new policy, with tech firms — which are susceptible to high borrowing costs — taking the brunt of the sell-off, sending the Nasdaq down more than two percent. .

Asia-Pacific markets were mixed on Friday after losses overnight on Wall Street.

China’s blue-chip stock index fell on Friday, its biggest weekly loss in three months, as local and foreign investors worried over US and Chinese regulatory sanctions.