Sensex slumps over 400 points in early trade; Nifty drops below 16,900

Equity benchmark Sensex tanked over 400 points in early trade on Monday, tracking losses in index majors Reliance Industries, Infosys and HDFC Bank as concerns over Omicron-induced restrictions had an adverse impact on investor sentiment.

The 30-share index plunged 444.83 points or 0.78% to 56,679.48 in the opening trade. Similarly, the Nifty tumbled 128.40 points or 0.76% to 16,875.35.

IndusInd Bank was the top loser in the Sensex pack, shedding over 4%, followed by Bajaj Finance, Asian Paints, Bajaj Finserv, Maruti and Tata Steel.

On the other hand, PowerGrid, M&M, Dr Reddy’s and HDFC were among the gainers.

In the previous session, the 30-share equity benchmark ended 190.97 points or 0.33% lower at 57,124.31, and Nifty declined 68.85 points or 0.40% to 17,003.75 Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth ₹715 crore on Friday, according to stock exchange data.

According to analysts, investor sentiment weakened on concerns over impact of restrictions imposed by various states amid rising number of Omicron cases over the weekend.

So far, 422 Omicron cases have been detected across 17 States and union territories in India and 130 of these people have recovered or migrated, according to Union Health Ministry data updated on Sunday.

Elsewhere in Asia, bourses in Shanghai and Hong Kong were trading with gains in mid-session deals, while Seoul and Tokyo were in the red.

Meanwhile, international oil benchmark Brent crude rose 0.40 % to $76.09 per barrel.