MUMBAI: Reflecting panic in world markets about the impact of the Omicron version of the coronavirus on the global economic recovery, equity indices surrendered early gains to close in the red on Tuesday.
Traders said depreciating rupee and continued outflow of foreign funds further affected the sentiment.
After gaining over 900 points in intra-day trade, 30-share BSE Sensex It closed at 57,064.87, down 195.71 points or 0.34 per cent.
Similarly, the NSE Nifty fell 70.75 points or 0.41 per cent to end at 16,983.20 – closing below the 17,000 mark for the first time in three months.
Tata Steel Sensex was the top loser in the pack, falling 3.87 per cent, followed by Kotak Bank, Bajaj Auto, M&M, Bharti Airtel, Reliance Industries, IndusInd Bank and Maruti.
On the other hand, PowerGrid, Titan, Bajaj Finserv, Nestle India, Bajaj Finance and Infosys jumped up to 3.43 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said domestic indices started the session stronger amid optimism in global markets following the US President’s announcement that lockdown is currently off the table.
“However, optimism was quickly replaced with a sudden sell-off in the domestic market as global equities slipped into negative territory following Omicron experts advice. Defying the market trend, IT and healthcare stocks as well as mid And traded in small cap. With profit,” he said.
Global markets fall after CEO of drug maker Moderna Stephen Bansal warned that the COVID-19 vaccines are unlikely to be as effective against Omicron as they are against the delta version.
Domestic investors also remained marginalized before the GDP figures were released.
“Markets will first react to GDP figures in early trade on Wednesday and auto sales will also start from 1st December. Needless to say, excessive news flow around the new COVID version will keep volatility high.
“Considering the scenario, it is prudent to continue with the hedging position till the market stabilizes.” Ajit Mishra, VP – Research, Religare Broking.
Sectorally, the BSE Metal, Energy, Auto, Bankex and Telecom indices fell up to 2.34 per cent, while consumer durables, IT, realty and tech gained.
BSE Midcap and Smallcap indices rose up to 1.45 per cent.
Elsewhere in Asia, shares in Hong Kong, Seoul and Tokyo ended with losses, while Shanghai was positive.
Stock exchanges in Europe were in negative territory in afternoon trade.
Meanwhile, the rupee declined by 10 paise to close at 75.17 (provisional) against the US dollar.
International oil benchmark Brent crude fell 3.12 per cent to $71.15 a barrel.
Foreign institutional investors remained net sellers in the capital markets on Monday as they sold shares worth Rs 3,332.21 crore, according to exchange data.
Traders said depreciating rupee and continued outflow of foreign funds further affected the sentiment.
After gaining over 900 points in intra-day trade, 30-share BSE Sensex It closed at 57,064.87, down 195.71 points or 0.34 per cent.
Similarly, the NSE Nifty fell 70.75 points or 0.41 per cent to end at 16,983.20 – closing below the 17,000 mark for the first time in three months.
Tata Steel Sensex was the top loser in the pack, falling 3.87 per cent, followed by Kotak Bank, Bajaj Auto, M&M, Bharti Airtel, Reliance Industries, IndusInd Bank and Maruti.
On the other hand, PowerGrid, Titan, Bajaj Finserv, Nestle India, Bajaj Finance and Infosys jumped up to 3.43 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said domestic indices started the session stronger amid optimism in global markets following the US President’s announcement that lockdown is currently off the table.
“However, optimism was quickly replaced with a sudden sell-off in the domestic market as global equities slipped into negative territory following Omicron experts advice. Defying the market trend, IT and healthcare stocks as well as mid And traded in small cap. With profit,” he said.
Global markets fall after CEO of drug maker Moderna Stephen Bansal warned that the COVID-19 vaccines are unlikely to be as effective against Omicron as they are against the delta version.
Domestic investors also remained marginalized before the GDP figures were released.
“Markets will first react to GDP figures in early trade on Wednesday and auto sales will also start from 1st December. Needless to say, excessive news flow around the new COVID version will keep volatility high.
“Considering the scenario, it is prudent to continue with the hedging position till the market stabilizes.” Ajit Mishra, VP – Research, Religare Broking.
Sectorally, the BSE Metal, Energy, Auto, Bankex and Telecom indices fell up to 2.34 per cent, while consumer durables, IT, realty and tech gained.
BSE Midcap and Smallcap indices rose up to 1.45 per cent.
Elsewhere in Asia, shares in Hong Kong, Seoul and Tokyo ended with losses, while Shanghai was positive.
Stock exchanges in Europe were in negative territory in afternoon trade.
Meanwhile, the rupee declined by 10 paise to close at 75.17 (provisional) against the US dollar.
International oil benchmark Brent crude fell 3.12 per cent to $71.15 a barrel.
Foreign institutional investors remained net sellers in the capital markets on Monday as they sold shares worth Rs 3,332.21 crore, according to exchange data.
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