Continuous FIIs’ sales along with caution over the rising cases of new Omicron variant caused a massive slide in key domestic equity indices on Monday’s post-noon trade session.
According to a media report, India VIX (volatility index) spiked to its 9 days high levels and signified the dominance of the bears in the market.
Due to the Omicron concerns, all sectors traded in the negative territory out of which realty, banking and financial counters witnessed the most weakness and pressure on sellling.
As per the report, at 12.45 pm, the S&P BSE Sensex declined by 1,601.35 points or 2.81% to 55,410.39 points.
The NSE Nifty50 fell by 527.25 points or 3.10% to 16,457.95 points, the report said.
Both the indices initially made a gap-down opening due to the rise in Omicron Covid19 cases worldwide.
The traders remained cautious with continuous net outflow of foreign funds.
So far, the Foreign Portfolio Investors (FPIs) pulled out Rs 17,696 crore from the Indian markets in December.
India’s Omicron cases increased to 153 on Sunday after Maharashtra reported 6 and Gujarat logged 4 more cases of the new variant of Covid19, respectively.
According to central and state officials, Omicron cases have been detected in 11 states and union territories including Maharashtra (54), Delhi (22), Rajasthan (17) and Karnataka (14) and Telangana (20). Gujarat (11), Kerala (11), Andhra Pradesh (1), Chandigarh (1), Tamil Nadu (1) and West Bengal (1).
A total of 6 persons tested positive for the Omicron variant of Covid19 in Maharashtra on Sunday.
On Monday, India reported 6,563 new Covid19 cases, 132 deaths in the last 24 hours.
Meanwhile, 3,41,87,017 people have recovered from the virus so far.
The report quoted Gaurav Garg, Head of Research, CapitalVia Global Research, as saying: “Our research suggests that the levels of 16,350 may act as support levels in the market.”
“If the market is unable to sustain above the level of 16,350, we can expect the market to trade till the lower range of 16,000-16,100,” he added.
“Nifty opened gap down and witnessed sharp selling pressure which drooled it down to 16,539 levels,” said Chandan Taparia, vice-president, Equity Derivatives and Technical, Broking & Distribution, MOFSL.