The 30-share BSE Sensex closed at 56,747, down 949 points or 1.65 per cent. while, broad NSE Nifty It closed 284 points or 1.65 per cent lower at 16,912.
Top losers in the Sensex pack included IndusInd Bank, Bajaj Finserv, Bharti Airtel, TCS, HCL Tech and Tech Mahindra, with their shares falling as much as 3.75 per cent. All 30 stocks closed in the red.
All sub-indexes closed lower on the NSE platform with Nifty IT, Pharma, Auto and FMCG falling up to 2.7 per cent.
Both the indices posted their lowest levels since August 27.
The major reasons behind today’s decline are as follows:
* New cases of Omron Edition
The rising number of Omicron variants has alerted investors. The number of cases of the heavily mutated variant in India rose to 12 on Sunday after Maharashtra said it detected seven new cases.
Anita Gandhi, director of Arihant Capital Markets, told news agency Reuters that Omicron’s concerns about a slowdown in international markets and domestic markets are expected to follow suit for some more time as there is no fresh positive trigger.
*Broad-based selling
Heavy selling was witnessed across all sectoral indices.
The Nifty IT index, which is up around 44 per cent for the year, fell nearly 3 per cent and had its worst day in nearly two months.
Index heavyweights Tata Consultancy Services (TCS) and Infosys fell 2.9 per cent and 2.3 per cent, respectively.
The Nifty Realty index closed early gains lower by 1.4 per cent, while the Nifty Auto index closed 1.8 per cent lower in November sales.
All sub-indices on the NSE fell over 1 per cent.
*Investors eye RBI MPC meeting
Investors are also waiting for a decision by a central bank to freeze interest rates in 2020 to keep the economic recovery from the pandemic afloat.
The three-day Monetary Policy Committee meeting of India’s central bank is starting from Monday. According to a Reuters poll of economists, the Reserve Bank of India (RBI) will keep rates in its December meeting and increase its reverse repo rate early next year and increase the repo rate in the next quarter.
While the RBI is expected to maintain status quo on interest rate policy, investors will keep an eye on the central bank’s comments for direction.
*Hong Kong shares closed at 14-month low
Hong Kong shares closed at a fourteen-month low, while China Evergrande Group hit a record low when dragged down by tech giants tracking losses on Wall Street.
Chinese regulators scrambled to reassure investors after Evergrande, one of China’s biggest developers, said it could run out of money to “meet its financial obligations” as it lost its $310 billion Struggles to comply with pressure to reduce debt.
What is worrying is that volatile levels of debt in the property sector could lead to a financial crisis. China wants to avoid a bailout, but it is also unlikely that the situation will worsen to such an extent that problems will reach that level.
Many real estate companies have been in trouble as the government has pushed to reduce debt levels, but officials have issued a statement saying China’s financial system is strong and default rates are low. Recent statements said most developers are financially sound and Beijing will continue to keep lending markets functioning.
(with inputs from agencies)
,