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

There was a massacre on Dalal Street on Monday as multiple headwinds hit both global and domestic investors. The sharp increase in Omicron-based Covid-19 cases, especially in the UK and other European countries, the aggressive policy stance of global central banks and concerns about a slowdown in the economic recovery are ruining investor mood.

In intra-day deals, the 30-pack Sensex index plunged more than 1,800 points to a multi-month low of 55,132. The broader Nifty50, on the other hand, broke below the 16.450 level and hit a low of 16.410.

The size of the market was extraordinarily thin, with five stocks falling for every stock ahead of the BSE.

That said, analysts expect the downtrend to end soon and a steep correction will lead to value purchases at lower levels.