Markets regain some lost ground after worst decline in seven months

Domestic markets regained some ground following their worst drop in seven months as investors assessed the threat of the new coronavirus variant Omicron. The gains were capped as the impact of the new variant on the economic recovery and central bank policy action remained uncertain.

After dropping as much as 724 points in the opening trade, the Sensex recovered sharply to trade in the green for most part of the day. Positive global cues helped market stay in the green albeit marginally. Consistent selling by global funds continued to weigh on performance.

In intra-day trade, the Sensex had declined to