The spread of the Omicron virus could reduce economic growth and disrupt earnings at least this is what the market believes as the Sensex slumped 800 points. With this the benchmark indices have now fallen more than 8% from their 52-week highs.
The Sensex ended the day lower by a whopping 950 points, while the Nifty ended lower by 284 points.
Among the losers in trade were Coal India, IndusInd Bank, Tata Consumer Products, Bajaj Finserv and HCL Tech. Shares of the world's biggest miner fell more than 6%, as the stock also went ex dividend.
India reported 17 more cases of the Omicron variant of COVID-19 on Sunday - nine persons in Rajasthan capital Jaipur, seven in Maharashtra's Pune district and a fully vaccinated man who arrived in Delhi from Tanzania - taking the tally to 21 in the country.
As we write, the Maharashtra government will impose stricter guidelines, while Karnataka too plans to impose fresh curbs. This could lead to further de-growth in select sectors. There are now worries that fresh omicron infections could be reported from around the country.
UPL was the only stock from the Nifty that managed to end the day in the green. Meanwhile, the forthcoming IPOs, including that of Shriram Properties may find the going tough should the market slump continue.