HMPV Virus Leaves Investors in Tears; Sensex Tanks 1258 pts, Nifty Down 1.62%; Market Loses ₹12 Lakh Crore
Owing to reports three cases of Human Metapneumovirus (HMPV), Sensex fell 1.59% at 77,964.99, while Nifty plunged by 1.62% at 23,616.05.
HMPV Virus Leaves Investors in Tears; Sensex Tanks 1258 pts, Nifty Down 1.62%; Market Loses ₹12 Lakh Crore
The stock market reacted sharply owing to reports of three cases of Human Metapneumovirus (HMPV) forcing investors to offload shares worth ₹12 lakh crore. HMPV, which kicked off in China has left the stock market investors in a tizzy as India Vix jumped by about 15%.
While Sensex tanked by 1,258.12 points, or 1.59% at 77,964.99, Nifty plunged by 288.70 points, 1.62% at 23,616.05. Nifty Smallcap 100 and Nifty Midcap 100 fell by 3.20% and 2.52% respectively. On the sectoral front, Nifty PSU Bank slipped by 4%, contributing to fall in Union Bank of India and Bank of Baroda by 7.8% and 5.85% respectively.
Top gainers and losers
Among the laggards in Sensex, Tata Steel had a tough day dipping close to 4.41%, while steel stocks including NTPC (-3.65%), Kotak Mahindra Bank (-3.26%), and Power Grid (-3.19%) lost their sheen. Shares of State Bank of India, Nestle India, HDFC Bank, UltraTech Cement, Mahindra & Mahindra, Reliance Industries, ITC, Asian Paints, IndusInd Bank, Adani Ports and Zomato fell in the range of 2-3%.
On the Nifty, Tata Steel (-4.60%), Trent (-4.35%), Bharat Petroleum (-3.68%), NTPC (-3.63%) and Adani Enterprises (-3.61%) witnessed severe decline. However, Apollo Hospitals (+1.94%), Tata Consumer Products (+1.12%), Titan (+0.72%), HCL Technologies (+0.1%), and ICICI Bank (+0.08%) managed to end the trading session with gains.
What do experts have to say?
“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 of Research, Geojit Financial Services.
He added, “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.”
While speaking on Q3 earnings Nair said, “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.”
