HMPV virus scare: Rs 11 lakh crore wiped out as Sensex, Nifty see panic sell-off

Sensex, Nifty crash today: The Indian stock market crashed on Monday on panic selling as three cases of Chinese HMPV virus cases were detected in India. Investor wealth declined by Rs 11 lakh crore to Rs 438.79 lakh crore today compared with a valuation of Rs 449.78 lakh crore recorded in the previous session. Sensex closed 1258 pts lower at 77,964 and Nifty slipped 388.70 pts to 23,616, reflecting weak investor sentiment on Dalal Street.

Of 30 Sensex stocks, 27 shares ended in the red. 

Stocks such as Tata Steel Ltd, NTPC, Kotak Bank, PowerGrid, Zomato, Adani Ports, IndusInd Bank, Asian Paints and ITC led the losers on Sensex, falling up to 4.41%. Titan, HCL Technologies and Sun Pharma were the sole gainers, rising up to 0.60%. 

As many as 176 stocks hit their 52-week highs and 113 shares hit their 52-week lows today. Market breadth was negative as out of 4244 stocks traded, 656 stocks were in the green and 3474 shares closed in the red. Around 114 stocks were kept unchanged.

While BSE midcap index tanked 1143 pts to close at 45,793 , BSE small cap index lost 1778 pts to 54,337.

BSE consumer durables, capital goods, banking and auto indices were the top losers falling 1113 pts to 65,170 followed by capital goods, banking and auto indices tumbling 1689 pts, 1186 pts and 1196 pts, respectively.

All 19 BSE sectoral indices closed in the red.

Here's a look at what analysts said on the outlook of the market . 

Shrikant Chouhan, Head Equity Research, Kotak Securities said, "We believe that the current market texture is weak but oversold; therefore, level-based trading would be the ideal strategy for day traders. For day traders, as long as the market is trading below 23750/78200, weak sentiment is likely to continue. Below this level, it could retest the 23500/77600 mark. Further downside may also occur, potentially dragging the index down to 23400/77300. Conversely, if it rises above 23750/78200, the market could bounce back to the 23900-23950/78600-78800 range."

Ajit Mishra – SVP, Research, Religare Broking said, " This pullback in the Nifty index, coupled with a spike in volatility (India VIX), has disrupted the recovery trend, signaling potential challenges ahead. The banking sector's recent underperformance, combined with weakness in the midcap and smallcap segments, has intensified the bearish sentiment. However, the pharma and healthcare sectors are expected to maintain their resilience, while other sectors may continue to face downward pressure. Traders are advised to adjust their positions accordingly."

Vinod Nair, Head of Research, Geojit Financial Services said "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). 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."