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Sensex Slips As Global Investors Resort To A Bearish Approach
Writer: Ratika Rana
Her primary objective is to inform, promote, educate and cultivate readers through writing.
India, 20 Dec 2021 12:28 PM GMT
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Creatives : Ratika Rana
Her primary objective is to inform, promote, educate and cultivate readers through writing.
Hesitant investors spooked by a surge in cases due to the Omicron variant across the world, thus slumping Sensex and Nifty 10 per cent from their record highs.
Indian stocks slump to a record low amongst worsening COVID-19 crisis and weak global markets. In India, both Sensex and the Nifty have entered the correction zone after hitting a 10 per cent low to their record highs. JSW Steel, Bajaj Finance, Tata Steel were some of the stocks traded at a loss.
In the 50-share pack Nifty, Pharmaceutical manufacturer Cipla was amongst the biggest gainer, at 2.17 per cent. Today, the equity investors were at a loss of ₹9.37 lakh crores as the total market cap of the firms listed in the Bombay Stock Exchange stood at ₹249.91 lakh crores.
'Negative Sentiments Unlikely To Last'
The Economic Times reported Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, "These negative factors persist, causing concerns about further downtrend in the market, particularly if FIIs continue to sell.
But negative sentiments are unlikely to last long, and FIIs will turn buyers soon when valuations become attractive. Retail investors can use the corrections to buy high-quality stocks, particularly financials, whose valuations have become attractive".
Major Reasons For The Sharp Fall
In the West, the US Federal Bank spoke of increasing the interest rates in March. Moreover, the widespread surge in the cases of COVID-19 has spooked investors from putting their money in such a volatile situation. The global health watchdog, World Health Organization(WHO), has said that the Omicron variant of COVID-19 is highly transmissible and could double within the span of 1.5 to 3 days.
After the Netherlands announced a strict lockdown, the possibility of having a widespread lockdown in the European countries had led to a bearish trend in the markets worldwide. Currently, foreign institutional investors (FIIs) are taking their money out of the market, fearing the announcement by the US Federal Bank and the rising threat of another wave caused by the pandemic.
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