The Sensex fell more than 1,000 points in early trade on Monday, reflecting across-the-board losses in international markets as investors became concerned over mounting Omicron cases.

Foreign capital outflows have also impacted investor morale.

In the first hour of trading, the 30-share index fell 1,028.61 points, or 1.80%, to 55,983.13. Likewise, the Nifty fell 307.50 points, or 1.81%, to 16,677.70.

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Bajaj Finance was the Sensex pack’s biggest loss, falling roughly 4%, followed by Tata Steel, SBI, NTPC, M&M, and HDFC Bank. On the other hand, Sun Pharma was the sole gainer.

The 30-share stock benchmark had closed the previous session 889.40 points, or 1.54% down, at 57,011.74. Similarly, the NSE Nifty fell 263.20 points, or 1.53%, to 16,985.20.

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According to stock exchange statistics, foreign institutional investors (FIIs) continued to be net sellers in the capital market on Friday, selling shares worth Rs 2,069.90 crore.

Rising inflation, hawkish central banks, exploding COVID cases, sustained selling by FIIs, and slowing growth momentum in the developed economies combined to produce the perfect storm that spooked the markets last week, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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“These negative factors persist, causing concerns about further downtrend in the market, particularly if FIIs continue to sell. But negative sentiments are unlikely to last long. Omicron variant, though fast-spreading, has not proved to be as highly virulent as feared. Also, FIIs will turn buyers soon when valuations become attractive,” he noted.

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Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading with severe losses in mid-session trades, as fears over the recurrence of COVID cases weighed heavily on global sentiment.

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Meanwhile, Brent crude, the international oil standard, lost 2.45% to USD 71.72 per barrel. Rupee weakens 9 paise to trade at 76.15 against the US dollar in the opening session.