Sensex slips for 3rd day on inflation, Omicron woes

Mumbai: The BSE Sensex continued its downward trajectory for the third consecutive session on Tuesday as spiking inflation and global concerns over the Omicron variant sapped risk appetite.

A weakening rupee and unabated foreign fund outflows added to the gloom, traders said.

The 30-share benchmark declined 166.33 points or 0.29 per cent to end at 58,117.09. Similarly, the broader NSE Nifty fell 43.35 points or 0.25 per cent to 17,324.90. ITC was the top loser on the Sensex chart, shedding 2.73 per cent, followed by Bajaj Finance, Kotak Bank, Bharti Airtel, Reliance Industries and Bajaj Finserv.

On the other hand, PowerGrid, Dr Reddy's, Nestle India, Axis Bank, ICICI Bank and IndusInd Bank were among the winners, climbing as much as 3.84 per cent. Sector-wise, BSE telecom, auto, energy and FMCG indices slipped up to 1.37 per cent, while power, utilities, oil and gas and healthcare ended with gains.

Broader BSE midcap index ended in the red, while the smallcap gauge was positive.

Asian markets reeled after China reported its first case of the Omicron coronavirus variant amid rising COVID-19 cases in multiple countries. Bourses in Shanghai, Tokyo, Seoul and Hong Kong ended with losses. Stock exchanges in Europe were, however, trading on a positive note in mid-session deals.

Meanwhile, international oil benchmark Brent crude slipped 0.26 per cent to USD 74.20 per barrel. The rupee tumbled 10 paise to close at 75.88 against the US dollar. Foreign institutional investors remained net sellers in the capital market on Monday, offloading shares worth Rs 2,743.44 crore, according to exchange data.