Stock market highlights today: Sensex dives 949 points

Sensex nosedives 949 points; Nifty ends below 16,950. Equity indices plunged on Monday with the benchmark BSE sensex falling nearly 950 points amid selloff across all sectors on Omicron fears. The 30-share BSE sensex fell 949 points or 1.65 per cent to close at 56,747. While, the broader NSE Nifty settled 284 points or 1.65 per cent lower at 16,912. The three-day monetary policy committee meeting of Reserve Bank of India started today. The RBI is expected to maintain status quo on the interest rate policy but investors will watch out for commentary from the central bank to get direction. The Indian rupee today plunged 30 paise to settle at 75.42 against the US dollar in line with massive erosion in domestic stocks as concerns over the new Omicron variant continued to weigh on sentiment. Markets plunged sharply lower and lost over one and a half percent, in continuation to Friday’s fall. After the flat start, weak global cues and updates on the new COVID variant started weighing on the sentiment as the day progressed. Consequently, the Nifty ended near day’s low to close at 16,912.25 levels. The sectoral indices traded in tandem and mostly ended in the red wherein IT, auto, FMCG and pharma were among the top losers. The rise in COVID cases has again started haunting the global markets and the situation may deteriorate further in near future. Besides, the upcoming MPC’s policy review outcome and macroeconomic data (IIP and CPI inflation) would keep the volatility high. Keeping in mind the scenario, we reiterate a cautious stance and suggest continuing with a hedged approach.