Equity investors were left poorer by Rs 5.19 lakh crore as their wealth reflected in total market cap of BSE listed firms slid to Rs 254.08 lakh crore.
Sensex and Nifty
The Sensex fell as much as 1,158 points and Nifty 50 index dropped below its important psychological level of 16,650.
As of 9:45 am, the Sensex was down 1,108 points at 55,903 and Nifty 50 index dropped 339 points or 2 per cent to 16,646.
Nifty Bank, Auto, Financial Services, FMCG, IT, PSU Bank, Private Bank, Realty and Consumer Durable indices also fell between 1.5-2.85 per cent.
Mid- and small-cap shares were also facing selling pressure as Nifty Midcap 100 index declined 2.76 per cent and Nifty Smallcap 100 index dropped nearly 3 per cent.
Reason:
According to Analyst the major cause behind the market fall are as follows:
- Rising inflation.
- hawkish central banks,
- exploding Covid cases caused by the Omicron.
- sustained selling by FIIs.
- slowing growth momentum
These negative factors persist, causing concerns about further downtrend in the market, particularly if FIIs continue to sell.
But negative sentiments are unlikely to last long.
Crude Oil
Oil prices slumped by about 2% early on Monday as surging cases of the Omicron coronavirus variant in Europe and the United States stoked investor worries that new restrictions on businesses to combat its spread may hit fuel demand.
Brent crude futures fell $1.36, or 1.9%, to $72.16 a barrel by 0036 GMT while U.S. West Texas Intermediate (WTI) crude futures fell $1.51, or 2.1%, to $69.35 a barrel.
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