Sensex Falls Sharply, Biggest Selloff in Two Months

Indian stock markets fell sharply on Monday with benchmark index Sensex plunging over 1,145 points to 49,744 in the biggest selloff since December. The Nifty settled 2% lower at 14,675. Weak global equity sentiment, stretched valuations, concern over rising covid cases in India and profit-taking were blamed for today’s selloff. Equities in India rose sharply in the first two weeks of February, driven by solid corporate earnings, Budget, and strong foreign fund inflows. But profit-taking has been seen in recent sessions as some investors locked in profits in recent winners on concerns that valuations are getting stretched.