Share markets in India have extended early losses and are presently trading deep in the red.
Benchmark indices continued their downtrend amid a worsening pandemic in the Western world and weakness in global markets.
The possibility of more Covid-19 restrictions being imposed ahead of the Christmas and New Year holidays loomed over several European countries as the Omicron variant spread rapidly. Netherlands has already announced a lockdown.
Meanwhile, rising inflation, hawkish central banks, and sustained selling by FIIs added to the worries.
The US Federal Reserve officials openly spoke of hiking rates as soon as March and of starting to run down the central bank's balance sheet in mid-2022.
The BSE Sensex fell over 1,800 points to 55,000 levels. Meanwhile, the NSE Nifty fell over 550 points to 16,400-mark.
Presently, the BSE Sensex is trading down by 1,725 points, down 3%. Meanwhile, the NSE Nifty is trading down by 541 points.
Down around 10% from their record highs, both Sensex and Nifty have now entered the correction zone.
The sell-off is seen across all sectors, particularly in the realty, banking and automobile stocks. The BSE realty index plunged over 7%.
Broader markets are also witnessing heavy selling with the BSE Midcap index and the BSE Smallcap index both trading down by 4.5%.
Shares of Bajaj Finance and IndusInd Bank fell over 5%, while SBI and NTPC fell over 4%.
Companies with higher global exposure were under massive pressure, with Motherson Sumi, Tata Motors, and Bajaj Auto down around 5%.
Bandhan Bank, SAIL, and Jindal Steel were some of the biggest losers from the BSE 100 index.
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