Sensex, Nifty In Freefall As New Virus Bites Mkts

Diagnostic stocks were in focus as the first two cases of HMPV were detected in Bangalore. There was broad-based sell-off in the market with midcap and smallcap indices falling between 2-3 per cent each and all sectoral indices closing in the red

Mumbai: Benchmark equity indices Sensex and Nifty crashed 1.6 per cent on Monday due to an across-the-board selloff, as concerns over third-quarter earnings growth and the continued flight of foreign capital sapped risk appetite. Besides, traders said that the new HMPV scare, depreciating rupee and weak trend in Asian markets further weighed on sentiment.

Extending loss for the second straight session, the 30-share BSE benchmark Sensex tanked 1,258.12 points or 1.59 per cent to close below the 78,000 level at 77,964.99. During the day, it plunged 1,441.49 points or 1.81 per cent to 77,781.62. As many as 3,474 stocks declined, 656 advanced and 114 remained unchanged on the BSE. The NSE Nifty slumped 388.70 points or 1.62 per cent to 23,616.05.

“Emerging markets are undergoing consolidation due to uncertainties surrounding new US economic policies, the Fed’s hawkish stance on future rate cuts, potential upward revision for CY25 inflation, and a strong dollar, all of which are negatively impacting market sentiment. The primary catalyst for a sharp sell-off in the domestic market appears to be concerns over the human metapneumovirus (HMPV),” said Vinod Nair, Head (Research), Geojit Financial Services.

Additionally, the initial Q3 consensus earnings estimate suggests a potential gradual recovery in domestic corporate earnings, which could explain the domestic market’s underperformance compared to global markets led by premium valuation, he added.

The BSE smallcap gauge cracked 3.17 per cent and the midcap index fell by 2.44 per cent. From the 30-share blue-chip pack, Tata Steel, NTPC, Kotak Mahindra Bank, IndusInd Bank, Power Grid, Zomato, Adani Ports, Asian Paints, Mahindra & Mahindra and Reliance Industries were among the biggest laggards. Titan and Sun Pharma were the only gainers.

“The Indian equity markets witnessed a sharp decline today, with both Nifty and Bank Nifty slipping below their 200-day moving averages (DMA). The sell-off can be attributed to a rise in Foreign Institutional Investor (FII) selling and concerns surrounding the upcoming Q3 earnings season,” said Santosh Meena, Head (Research), Swastika Investmart.

All BSE sectoral indices ended lower, with utilities tumbling 4.16 per cent, power (3.73 per cent), services (3.45 per cent), metal (3.15 per cent), oil & gas (3.15 per cent), energy (3.03 per cent), industrials (2.97 per cent) and commodities (2.74 per cent).

“Diagnostic stocks were in focus as the first two cases of HMPV were detected in Bangalore. There was broad-based sell-off in the market with midcap and smallcap indices falling between 2-3 per cent each and all sectoral indices closing in the red,” observes Siddhartha Khemka, Head (Research), Wealth Management, Motilal Oswal Financial Services Ltd.

Investors lose Rs 10.98 lakh cr

Investors’ wealth tumbled Rs10.98 lakh crore on Monday as markets crashed due to across-the-board selloff amid concerns over third-quarter earnings growth and foreign fund exodus. The market capitalisation (mcap) of BSE-listed firms dived Rs10,98,723.54 crore to Rs4,38,79,406.58 crore (Rs438.79 lakh cr or $5.11 trn).