Why Sensex falls: Sensex falls for the 2nd day, plunges 949 points; Rs 4.2 lakh crore the wealth of investors wiped out

NEW DELHI: Benchmarks fell for the second day in a row on Monday as cases of Omicron surged in India, as well as other territories, threatening a new round of local restrictions.

The sharp drop, which was led by IT stocks, wiped Rs 4.29 lakh crore’s stock wealth from the market. Among other things, FMCG and pharmaceutical stocks were the main victims of the day.

The 30-pack Sensex shares lost 949.32 points or 1.65% to close at 56,747.14. Its larger counterpart NSE Nifty lost 284.45 points or 1.65% to 16,912.25.

“As Street waits for the RBI’s position on interest rates, Nifty sold below 17,000. The bears gained the upper hand in a day of no recovery. The FII sell-off continued unabated despite the buildup seen today in high quality financials by local investors, ”said S Ranganathan, head of research at LKP Securities.

Market at a glance:

  • Voda Idea Extends Earnings For Another Day, Increases 2%
  • Anand Rathi Wealth IPO subscribed almost 8 times
  • India The VIX, a barometer of volatility, jumps by around 9%
  • Morepen Labs zooms in 11% as it gets USFDA nod
  • JBM Auto increases 11% ahead of share split decision

Among the names in the Nifty50 index, UPL was the only winner, up 0.44%.

Cipla was the first loser of the field, losing 3.70%. Tata Consumer, Bajaj Finserv, Bharti Airtel, TCS, HCL Tech, Tech Mahindra, Tata Motors, Wipro and Divi’s Labs are others who finished in the red.

Larger market indices ended lower, but outperformed their major peers. Nifty Smallcap was down 1.09% and Nifty Midcap was down 1.42%. Nifty 500, NSE’s largest index, ended down 1.60%.

HFCL, BEML, MMTC, Zee Entertainment Enterprises, Vodafone Idea and Indian Bank were the main gainers of the mid and small cap indices, climbing 1-10%.

Fortis Healthcare, ICICI Securities, Coforge, Indigo Paints, PVR and Indiabulls Housing Finance were the biggest losers in the larger market space, falling by around 4-6%.

All sector indices posted declines. Nifty IT fell the most at 2.70%. Nifty Pharma, Nifty FMCG, Nifty Auto and Nifty PSU Bank were among those who added more than 1% each.

The breadth of the market was in favor of the losers as 1,418 stocks ended in the green while 2,004 names settled with cuts. No less than 215 stocks hit 52-week highs, mostly in the small-cap space. Meanwhile, 43 names hit 52-week lows, mostly in the microcap space. Approximately 530 stocks reached the upper limit of the circuit and 245 the lower limit of the circuit.

European markets traded in a mixed fashion. The London-based FTSE rose 0.62% while Paris and Frankfurt rose 0.30% and fell 0.10%, respectively. In Asia, China, Thailand and Singapore closed in the red, while others posted gains.

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