Sensex Experiences a Significant Drop of 1,258 Points Amid HMPV Concerns and Global Instabilities
Click to start listening
Mumbai, Jan 6 (NationPress) The Indian stock market encountered a drastic drop on Monday as domestic benchmark indices fell over 1.5 percent amid rising apprehensions regarding human metapneumovirus (HMPV) alongside global instabilities.
Heavy selling activity was noted in the PSU bank sector on Nifty, which dropped by over 4 percent. Additionally, sectors like real estate, metal, energy, PSE, and commodities also saw declines exceeding 3 percent.
The Sensex concluded at 77,964.99, down 1,258.12 points or 1.59 percent, while the Nifty settled at 23,616.05, a decrease of 388.70 points or 1.62 percent. The intraday low for the Sensex was 77,781.62, and for the Nifty, it was 23,551.90.
The Nifty Bank index closed at 49,922, down by 1,066.80 points, or 2.09 percent. Meanwhile, the Nifty Midcap 100 index finished at 56,366.9 after a decline of 1,564.10 points, or 2.70 percent, and the Nifty Smallcap 100 index closed at 18,425.25, down 608.45 points, or 3.20 percent.
Market analysts indicate that the primary driver for this sharp sell-off in the domestic market is the apprehension surrounding HMPV.
“Emerging markets are currently undergoing consolidation due to uncertainties related to new US economic policies, the Fed's hawkish stance on future rate cuts, possible upward revisions for CY25 inflation, and a robust dollar, all of which are adversely affecting market sentiment,” stated the experts.
On the Bombay Stock Exchange (BSE), 657 shares closed in green, while 3,472 shares ended in red, with 115 shares remaining unchanged. Sector-wise, all sectors ended in the red.
Within the Sensex pack, notable losers included Tata Steel, NTPC, Kotak Mahindra Bank, PowerGrid, Zomato, IndusInd Bank, Asian Paints, Reliance, M&M, UltraTech Cement, HDFC Bank, Nestle India, and SBI. Conversely, Titan, HCL Tech, and Sun Pharma were among the top gainers.
Karthick Jonagadla, Founder and CEO of Quantace Research, noted that the Nifty has closed below its crucial 200-day exponential moving average (200 DEMA) of 23,650.
“We uphold a constructively positive outlook, foreseeing a potential upside of 5-6 percent for the Nifty Index in the near term if key levels are reclaimed and sentiment improves,” he affirmed.
