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Sensex Falls 1,190 Points, Closes At 4-Month Low On Omicron Fears

Sensex Falls 1,190 Points, Closes At 4-Month Low On Omicron Fears

The Indian equity benchmarks closed at their lowest in four months as spread of Omicron variant of Coronavirus rattled investors' sentiment. Spread of the new Covid-19 variant Omicron has stoked fears of stagflation, analysts said. Stagflation is a scenario with rising inflation and stagnant or declining economic growth due to the spread of Omicron and expectations of lockdowns. The Sensex fell as much as 1,879 points, its biggest single day fall since February 26 and Nifty tumbled below its important psychological level of 16,450 to hit an intraday low of 16,410.

The Sensex fell 1,190 points or 2.09 per cent to close at 55,822 and Nifty 50 index dropped 372 points or 2.2 per cent to settle at 16,614.

Markets fell across the globe as surging Omicron Covid-19 cases triggered tighter curbs in Europe and threatened to swamp the global economy into the New Year. The spread of Omicron saw the Netherlands go into lockdown on Sunday and put pressure on others to follow, though the United States seemed set to remain open.