The Bombay Stock Exchange’s Sensex slipped over 900 points on Monday and the National Stock Exchange’s Nifty plunged below 14,800 in trading. Except for metals, all the sectoral indices were deep in the red. Auto giant Mahindra and Mahindra, Axis Bank, and construction engineering firm Larsen and Toubro were among the major losers.
The reason for the plunge on the markets are concerns over rising COVID cases in India. These COVID concerns have impacted foreign portfolio investors flow into the market, which appears to be slowing down.
The Indian state of Maharashtra has announced a fresh set of restrictions in the state to check the spread of the contagious virus.
Another factor causing markets to tank is rising inflation.
Lacklustre global cues are also weighing heavily on investor sentiments in India.