Sensex Closes 1200 Points Lower As Omicron, Inflation Worries Linger

A combination of factors led to a sharp fall in the markets with the Sensex falling a solid 1200 points as global cues were extremely weak. Worries of massive cases of the omicron virus spreading and the possibility of lockdowns continued to worry investors. Apart from this Foreign Portfolio Investors have been constantly pulling out money which weighed on investor sentiments.

The Sensex ended the day lower by 1200 points, while the Nifty dropped 371 points in trade. Leading the set of losers in trade were stocks like Tata Motors, Tata Steel, State Bank of India, ONGC, HeroMoto Corp etc. Cipla was the only stock from the Nifty that registered some meaningful gains.

We at good returns have been telling investors to stay invested and buy into the market in small quantities. One is not sure how the global markets would pan out at these levels. Despite a 10% knock on the markets from historic highs, the markets still seem to be overvalued. In case the possibility of a lockdown looms, we may see the markets fall even further. Overall, the markets are likely to continue to decline and investors need to stay cautious.

Meanwhile, crude oil fell sharply by 5.67% as investors continued to worry over the spread of the omicron.