HMPV triggers a sharp selling-off with investors losing Rs 12 lakh crore in a single session
India’s equity market fell sharply on Monday over fears related to the new HMPV virus, continuous selling by foreign institutional investors (FIIs) and weakening global cues.
The Sensex ended 1,258.12 points or 1.59% lower at 77,964.99 while the Nifty fell 388.70 (1.62%) to settle at 23,616.05. During intraday deals, the two indices plummeted by up to 1.88%. The sharp sell of wiped out more than Rs 12 lakh crore from investors kitty as the market market capitalisation of all BSE listed firms fell most in a single-day fall in three months. At the end of Monday’s session, the m-cap came down to Rs 438.95 lakh crore.
“The market today experienced a decline and entered a state of panic, primarily due to the detection of a case of human metapneumovirus (HMPV) in Bangalore. This virus, a type of respiratory illness, has the potential to disrupt businesses, logistics, and even lead to partial lockdowns, similar to the impact of COVID-19,” said Anand K. Rathi, Co-Founder of MIRA Money.
Narendra Solanki, Head Fundamental Research- Investment Services, Anand Rathi Shares and Stock Brokers said that the HDFC Bank and other major players reported headline numbers that fell below market expectations, intensifying worries about the upcoming third-quarter earnings season. “These disappointing figures come amidst an already weak global macroeconomic environment, marked by heightened uncertainties and challenges. Adding to the pressure, the emergence of a new HMPV virus variant has further unsettled investors, sparking fears of potential disruptions,” said Solanki.
Experts said that all these factors cast a shadow over near-term market sentiment. The market was further pressured by continued FII outflows, with net sales of Rs 4,285 crore on Friday. The exit coincides with weakening of Indian rupee. The global cues have also turned negative as officials at the Federal Reserve have taken a hawkish stance on future rate cuts.
From the 30-share Sensex 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. Fifteen Sensex stocks fell more than 2% on Monday.
In the broader market, the Nifty Smallcap100 and Nifty Midcap100 indices ended down by 2.70%, and 3.20%, respectively. All sectoral indices also ended in the red, with Nifty PSU Bank falling by 4%.