Omicron spooks markets, Sensex sheds 949 pts

Investors lose Rs 4.29 lakh cr; all indices in red

Mumbai, Dec 6: 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 threemonth 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.

Equity investors lost Rs 4.29 lakh crore in Monday’s session, with the market capitalisation of all BSE-listed companies standing at Rs 2,56,72,771.67 crore.

India reported 17 more cases of the Omicron variant of the coronavirus on Sunday -- nine people in Rajasthan’s 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.

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

Global markets were mixed as investors tracked the spread of Omicron in multiple countries. In China, the central bank cut banks’ reserve requirements to shore up liquidity, even as embattled property major Evergrande said it may run out of money to “perform its financial obligations”.

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.