Inflation, Omicron spook D-Street bulls; investors lose Rs 1 lakh cr
On Monday, benchmark indices gave up their morning gains and fell for the second day, owing to fears over mounting Omicron virus outbreaks in Europe and global inflation.The 30-share Sensex fell 503.25 points, or 0.86 percent, to 58,283.42 at the closing. From the day’s peak, the index has dropped over 900 points. Its broader counterpart, the NSE Nifty, fell 143.05 points (0.82 percent) to 17,368.25.
By the end of the day, equity investors had lost Rs 1.06 lakh crore. With the exception of a few IT firms, stocks from all sectors showed selling. The names of banks and financial institutions were among the major stumbling blocks.”Given rising global inflation, the markets will closely scrutinize the policy outcomes of key central bank meetings, particularly the US Fed and European Central Bank,” said Vinod Nair, Head of Research at Geojit Financial Services.
Consumer prices in the United States surged even more in November as the cost of products and services rose across the board due to supply restrictions, resulting in the highest annual increase since 1982. This week, India will release its November inflation figures, which many predict will rise even further.This week, the Federal Reserve is largely expected to announce a speedier tapering of asset purchases and, as a result, an earlier start to interest rate hikes. It will also update the rate dot plots throughout the next few years. This week, the European Central Bank and the Bank of Japan will both review their monetary policies.
Axis Bank was the leading gainer among bluechip stocks, up 2.39 percent. Other winners included Tech Mahindra, SBI Life Insurance, Wipro, Hindalco Industries, Maruti Suzuki, Power Grid, and Titan.With a loss of 2.99 percent, Bajaj Finance was the worst performer in the Nifty group. Others that ended in the red were Bajaj Finserv, Reliance Industries, M&M, Tata Consumer, Nestle India, Indian Oil, and Britannia Industries.VIP Industries, Sun Pharma Advanced Research, Alok Industries, Tata Communication, Sona Comstar, and Syngene International were among the top gainers in the mid and smallcap indices, with gains ranging from 3 to 9%.
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