How Did Sensex Crashes Over 1300 Points Nifty Become the Best? Find Out.
The benchmark BSE Sensex declined 1,330 points, while the Nifty 50 index tumbled below 16,600, a key psychological milestone.
The spreading of the Omicron Coronavirus shattered investors' credence, causing the Indian market indexes to open with a gap downwards. The benchmark BSE Sensex tumbled 1,330 points, while the Nifty 50 index declined below 16,600, a key psychological milestone.
The Sensex was down 1,330 points at 55,681 at 11:02 a.m., and the Nifty 50 index was down 403 points, or 2.37 percent, to 16,582. Spike in Omicron Covid-19 cases triggered severe restrictions in Europe and threatened to overwhelm the global economy into the New Year, sending Asian stock markets down and oil prices lower on Monday.
Beijing brightened the environment by decreasing one-year loan rates for the first time in 20 months, but some had expected a five-year rate cut as well. Chinese blue chips were still down 0.4 percent, while the MSCI Asia-Pacific stock index outside of Japan was down 0.8 percent. The Nikkei in Japan fell 1.7 percent, while South Korean markets fell 1.2 percent. S&P 500 fates shed 0.8 percent and Nasdaq fates very nearly 1%. EURO STOXX 50 future losing 1.1 percent and FTSE future losing 1.0 percent.
The spread of Omicron affect the Netherlands to go into lockdown on Sunday, putting pressure on other countries to do the same, even though the US appeared to be unaffected.
Back home, selling pressure was obvious across the sectors, with all 15 of the National Stock Exchange's sector gauges trading down, headed by the Nifty Metal Index's nearly 3% drop. The Nifty Bank, Auto, Financial Services, FMCG, IT, PSU Bank, Private Bank, Realty, and Consumer Durables indexes all dropped 1.5-2.85%. Mid- and small-cap stocks were also under pressure, with the Nifty Midcap 100 index falling 2.76 percent and the Nifty Smallcap 100 index falling over 3%.
The Nifty 50 index was down forty-eight points, driven by a 4% drop in Bajaj Finance. JSW Steel, Tata Steel, State Bank of India, Bharat Petroleum, Tata Motors, ONGC, HDFC Bank, Hero MotoCorp, Axis Bank, Tech Mahindra, NTPC, Hindalco, and Bajaj Finserv had seen their stock prices drop by 2.5-3.6 percent. Cipla and Sun Pharma, on the other hand, were big winners.
On the BSE, the overall market breadth was highly negative, with 2,389 shares decreasing and 568 gainings.
