The benchmark indices at BSE and NSE fell sharply by over 2.9 per cent on Friday as concerns mounted over new Covid variant, there was anxiety around US central bank likely to wrap up its stimulus programme and raise interest rates earlier than expected in the wake of rise in inflation.
This week itself Sensex has lost around 2,529 points or 4.2 per cent and since its highs on October 19, 2021 it is down 5,138 points or 8.2 per cent.
The markets are currently weighed down by various factors.
If expensive valuations were a concern for domestic markets, fresh spike in Covid cases across Europe, a new covid strain in South Africa and its possible impact on the pace of global economic recovery is weighing on the investor sentiment for now.
It is also important to note that long term investors should not sell their holdings in panic but only do so if their investment targets have been met and they are in need of funds.