Sensex take a dive of 950 points today
Due to the increased cases of Omicron variant in the country, there was a huge fall in the stock markets on Monday. The Bombay Stock Exchange (BSE) benchmark index Sensex 30 (Sensex-30) closed at 56,747 with a dive of about 949 points. On the other hand, Nifty lost 284.45 points and closed at 16,912.25. According to experts, all-round selling amid concerns over Omicron led to the fall in the market.
According to experts, the stock markets fell due to the arrival of more cases of new variants of the virus Omicron on Saturday and Sunday in the country. Apart from this, investors are waiting for changes in the monetary policy of the Reserve Bank (RBI). The three-day meeting of the Monetary Policy Committee of RBI has started from Monday. It is expected that the RBI will not make any changes in the interest rates to maintain the status quo. However, investors are waiting for RBI’s announcement in this regard after the meeting is over.
Meanwhile, the Indian rupee on Monday weakened by 30 paise to Rs 75.42 against the US dollar on rising concerns over Omicron and a sharp fall in the stock markets.
S Ranganathan, Head of Research, LKP Securities, told news agency PTI, “The market started with a downside and the selling intensified in the afternoon trade. Indexes across all segments and sectors remained in losses.” He said that the market is awaiting the monetary policy review of RBI. Nifty came under 17,000 as the bears dominated. Selling by Foreign Institutional Investors (FIIs) continues. However, domestic investors bought major financial stocks on Monday.
All the stocks included in Sensex remain in loss. IndusInd Bank recorded the highest decline of about 4 percent. Apart from this, Bajaj Finserv, Bharti Airtel, TCS, HCL Tech and Tech Mahindra were also major losers.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Increased uncertainty around Omicron has dampened investor morale. Besides, investors are also waiting for the announcement of monetary policy from RBI on Wednesday. In the near future. With new variants, RBI and US Fed Reserve’s policy decisions will continue to dominate, the stock markets are expected to remain volatile. The market expects the RBI to continue with its ‘liberal’ policy in view of the near future uncertainties. However, for the year 2022. This is expected to change in the first half.”
Meanwhile, in other Asian markets, Shanghai Composite Index in China, Hang Seng of Hong Kong and Nikkei of Japan were the losers. While South Korea’s Kospi (KOSPI) rose. Major markets in Europe remained bullish during afternoon trading.
