Markets nosedive as Omicron triggers across-board sell-off

Mumbai: Equity indices spiralled lower on Monday as the spread of the Omicron variant in the country spooked investors and triggered an across-the-board sell-off.

A plunging rupee and continued selling by foreign institutional investors added to the woes, traders said.

Extending its losing streak for the second straight session, the 30-share BSE Sensex crashed 949.32 points or 1.65 per cent to close at 56,747.14, an over three-month low.

On similar lines, the broader NSE Nifty slumped 284.45 points or 1.65 per cent to 16,912.25.

All Sensex components ended in the red. IndusInd Bank was the biggest laggard, shedding 3.75 per cent, followed by Bajaj Finserv, Bharti Airtel, HCL Tech, TCS, Tech Mahindra and Infosys.

Investors' wealth tumbled Rs 5,80,016.37 crore in two trading sessions to Monday, while the market capitalisation of BSE-listed companies declined by Rs 5,80,016.37 crore to Rs 2,56,72,774.66 crore in two days.

India reported 17 more cases of the Omicron variant of the coronavirus on Sunday -- nine persons in Rajasthan capital Jaipur, seven in Maharashtra's Pune district and a fully vaccinated man who arrived in Delhi from Tanzania -- taking the tally to 21 in the country.

With this, four states and the national capital have now reported cases of the potentially more contagious variant which has sparked a fresh alert across the world. The Reserve Bank's rate-setting panel began its three-day deliberations on Monday to decide the next monetary policy amid expectations that the central bank will maintain status quo on the benchmark interest rate in the backdrop of the Omicron

threat.

All sectoral indices ended in the red, with BSE IT, teck, telecom, energy, healthcare and auto tumbling up to 2.49 per cent. Broader BSE midcap and smallcap indices fell 1.35 per cent each.

In Asia, bourses in Shanghai, Hong Kong and Tokyo ended with losses, while Seoul was positive.

Equities in Europe were trading on a positive note in mid-session deals.