Realty and PSU Bank Indices Crack By Up To 5% In The Market Meltdown

The market mayhem extends for the second straight day on weak global cues and Omicron worries. The Nifty took a severe knock in Monday's session with the index tumbling to day's low of 16566.8. Sensex also last traded with a cut of almost 1310 points at around 11:10 am. Nifty Bank too is playing its part in the plunge with a drag of over 3.5%, while broader markets also underperformed sharply. Notably, the ongoing meltdown has led India VIX to climb 12.63 percent.

Meanwhile, among Nifty sectoral indices, while all indices traded in the red, Realty and PSU Bank indices tumbled the most by over 4.5% and 3.99%, respectively. Within the Nifty Realty index, its 10 constituents traded with a cut of between 1-5%, with Lodha Developers falling the most by over 5 percent.

Likewise, in the Nifty PSU Bank index, all the 13 constituents traded with a cut of between 1-5%, with Bank of Baroda seeing the most fall by over 4 percent at the time of writing this report.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services is of the view that| Negative global cues, continued FII selling, absence of any positive trigger and increasing cases of Omicron is likely to continue putting pressure on the market. "Thus traders are advised to maintain their negative bias in the market for next few days", he added.

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