Fears about the escalating Omicron cases led to a huge drop in key domestic equity indices during the mid-day trading session. The Sensex fell roughly 1,100 points, or 1.8 percent, to 55922.58 (as of 1:30 PM), while the Nifty50 fell to a low of 16,653 points, down 1.8 percent. The India VIX (volatility index) surged to its highest level in nine days and signified the dominance of the bears in the market. Moreover, all sectors were in the red, with Realty, Banking, and Financial counters seeing the most weakness and selling pressure. The S&P BSE Sensex dropped by 1,601.35 points, or 2.81 percent to 55,410.39 points at 12.45 p.m. Similarly, the NSE Nifty50 index dropped by 527.25 points, or 3.10 percent to 16,457.95.
Due to an increase in Omicron cases around the world, both indices initially opened with a gap down. Traders were also cautious with ongoing net outflow of foreign funds. So far in December, foreign portfolio investors (FPIs) have pulled out Rs 17,696 crore from Indian markets.
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