Markets rebound as Omicron fears ease; FPIs remain net sellers

 While global equity markets rallied, other asset classes held steady. Gold, treasury, and dollar saw little change

India’s benchmark indices rebounded from their three-month lows on Tuesday on hopes that the Omicron variant of coronavirus would likely cause only mild illness and prove less damaging to the economy.

The Sensex closed at 57,633, up 886.5 points, or 1.56 per cent -- the most since September 23. In intra-day trade, the index was up as much as 1,158 points or 2.04 per cent. The Nifty50 index, on the other hand, ended the session at 17,146, up 233.6 points, or 1.38 per cent -- the most since November 1. In the previous session, both the indices had closed at their lowest level since August 27 after dropping 1.65 per cent.

Despite the sharp rally, foreign portfolio investors remained net sellers to the tune of Rs 2,585 crore. In the previous 11 trading sessions, overseas funds have sold shares worth nearly $5 billion.

Most global markets traded over 1 per cent higher after a sharp overnight rally on Wall Street, with initial data showing that the surge in Omicron cases had not overwhelmed hospitals. The US markets jumped after President Joe Biden’s Chief Medical Advisor Dr. Anthony Fauci said, “Thus far, it does not look like there’s a great degree of severity to it.”