Markets sharply fell in the week as fears around high inflation data in US, interest rate hikes, spread of Omicron gripped investors.
![](/blog/content/images/2021/12/image-13.png)
Though Fed has been hinting at possible rate hikes, Bank of England set the precedent by being the first central bank to raise interest rates in post-pandemic era. Interest rate hikes usually signal higher fall in mid and small cap segments than large cap segments.
Alongside, rising fears around the spread of Omicron globally and re-initiation of lockdowns in countries have also spooked markets.
US markets also saw a fall in the previous week, though less severe than Indian markets.
![](/blog/content/images/2021/12/image-14.png)
The fall in key indices was led by banks, mainly PSUs. Pharma sector outperformed benchmarks amid increased activity expected in this segment as the variant spreads.
NFOs currently open
- Mahindra Manulife Balanced Advantage Yojana