Omicron scare, FPI sell-off: Here's what spooked the markets on Monday

Analysts expect the downtrend to be arrested soon and steep correction will lead to value buying at lower levels

There was a bloodbath on Dalal Street on Monday as multiple headwinds hit global and domestic investors alike. The sharp surge in Omicron-based Covid-19 cases, especially in the UK and other European countries, hawkish policy stances of global central banks, and worries of a slowdown in economic recovery spoiled investors’ mood.

In intra-day deals, the 30-pack Sensex index plunged over 1,800 points to hit a multi-month low of 55,132. The broader Nifty50, on the other hand, breached below the 16,450 level and hit a low of 16,410.

The market breadth was extremely paltry with five stocks declining for every one