Benchmark equity indices slumped 1.65% on Monday on fears of a rapid spread of the Omicron variant of the coronavirus and its potential adverse impact on the economy. Technology, automotive and pharmaceutical stocks were the worst hit, while all sectoral indices ended in the red.
The BSE S&P Sensex slid 949.32 points to 56,747.14 as all 30 stocks on the index ended with losses. The NSE Nifty 50 index fell 284.45 points to 16,912.25.
“Ambiguity surrounding Omicron continued to dent the morale of domestic investors ahead of the important RBI policy announcement on Wednesday,” said Vinod Nair, head-research, Geojit Financial Services.
“The domestic market is expected to be volatile as the near term will be dominated by developments on new variant and, RBI and [U.S.] Fed policy decisions. Market expects RBI to hold on to the accommodative policy considering short-term uncertainties,” he added.
However, a change [in policy] was expected in the first half of 2022, which the Indian market was factoring in, while global equities were ‘trading mixed’, Mr. Nair observed.
