Sensex Sinks 621 Points, Nifty Below 17,750 Amid Global Cues, Omicron Fears

Tech Mahindra the top loser in the Sensex pack, shedding over 2.5 per cent, followed by UltraTech Cement, Reliance Industries, HCL Tech, HDFC, Kotak Bank, HDFC Bank, and TCS

The BSE Midcap index ended just 0.05 per cent down, while the BSE Smallcap index added 0.01 per cent

New Delhi: After a four-day winning streak, the key Indian equity benchmarks on Thursday lost momentum and slumped after massive Covid outbreak in the country and weakness across global markets. During Thursday early morning trade, the BSE Sensex and NSE Nifty opened sharply lower and were down 0.9 per cent.

According to PTI, global stocks spiralled lower after minutes of Federal Reserve’s recent meeting indicated that the US central bank may hike interest rates faster to cool inflation, traders said.

The 30-share BSE index ended 621.31 points (1.03 per cent) lower at 59,601.84. Similarly, the NSE Nifty plunged 179.35 points (1 per cent) to 17,745.90.

Tech Mahindra the top loser in the Sensex pack, shedding over 2.5 per cent, followed by UltraTech Cement, Reliance Industries, HCL Tech, HDFC, Kotak Bank, HDFC Bank, and TCS.

On the other hand, IndusInd Bank, Bharti Airtel, Maruti, Titan and Bajaj Finance were among the gainers.

A total of 11 out of 15 sector gauges, compiled by the NSE, settled in red. Nifty IT, Nifty Financial Services, and Nifty Bank cracked as much as 1.55 per cent.

The broader markets, however, outperformed their large-cap counterparts. The BSE Midcap index ended just 0.05 per cent down, while the BSE Smallcap index added 0.01 per cent.

According to the US Fed minutes from its December 14-15 policy meeting, policymakers believe the US job market is healthy enough and ultra-low interest rates are no longer needed. "...quicker than previously anticipated rate hike from the US Fed could witness outflows from the domestic markets and could weigh on sentiments," Reliance Securities said in a research note.

Following a massive sell-off in the US markets, bourses in Shanghai, Seoul and Tokyo ended with significant losses. Hong Kong closed in the green. Stock exchanges in Europe also witnessed intense selling pressure in mid-session deals.

Meanwhile, international oil benchmark Brent crude rose 0.25 per cent to $81 per barrel.

Foreign institutional investors remained net buyers in the capital market on Wednesday, as they purchased shares worth Rs 336.83 crore, according to exchange data.