Domestic equity continued selling pressure amid negative cues from other Asian markets. All major sector closing lower as intense global Omicron infections to derail economic recovery. Nifty is down more than 2%, broader market underperformed the main indices, Nifty MidCap is down 3.6% while Small Cap index declined by 3.8%.
All major Asian indices also trading in red. Nikkei and Hang Seng fell more than 2%, while Shanghai Composite was down 1%. The Market is in negative zone since last week, taking negative global cues, FII selling and issues of Omicron worries. The fear of another lockdown will impact revival of economies across the globe. The measures taken towards policy tightening and liquidity reduction by major central banks to curb rising inflation. The government's focus is clearly on supporting growth through sufficient liquidity and low interest rates despite street fears over rising inflation, changes in interest rate policy by global economies and high commodity prices. However, India is at the beginning of capex revival phase and therefore corporate earnings recovery looks sustainable and premium valuations might sustain, barring near term hiccups.