Indian Stock Market Sees Sharp Decline Amid Global And Domestic Concerns

The Indian stock market experienced a significant downturn on Monday, with domestic benchmark indices falling by more than 1.5%. Growing concerns about human metapneumovirus (HMPV), coupled with global uncertainties, contributed to the sharp sell-off.

The PSU bank sector saw the most substantial losses, with a decline of over 4% on the Nifty. In addition, other major sectors such as realty, metal, energy, PSE, and commodities also suffered losses, each falling by more than 3%.

At the close of trading, the Sensex stood at 77,964.99, down by 1,258.12 points, or 1.59%. Meanwhile, the Nifty ended at 23,616.05, losing 388.70 points, or 1.62%. During the day, both indices reached intraday lows, with the Sensex dipping to 77,781.62 and the Nifty touching 23,551.90.

Also Read: Stock Market: Sensex Slides Amid HMPV Fears; All Sectors End In Red

The Nifty Bank index closed at 49,922, down by 1,066.80 points, or 2.09%. Similarly, the Nifty Midcap 100 index ended at 56,366.9, a decline of 1,564.10 points, or 2.70%, while the Nifty Smallcap 100 index fell by 608.45 points, or 3.20%, settling at 18,425.25.

Concerns Over HMPV And Global Economic Uncertainty Drive Market Sentiment

Market experts attribute the sharp decline to a combination of factors, primarily concerns about the spread of HMPV. Additionally, global uncertainties, including potential changes in US economic policies, the Federal Reserve’s stance on rate cuts, and inflationary pressures, have negatively impacted market sentiment. Experts note that these factors are contributing to a broader consolidation in emerging markets.

“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,” said market analysts.

BSE Data Reflects Broad Market Weakness

On the Bombay Stock Exchange (BSE), the market reflected widespread losses. Out of 4,244 shares, 657 closed in the green, while 3,472 ended in the red. The remaining 115 shares showed no change. All sectors closed in negative territory, highlighting the broad-based nature of the sell-off.

Among the top losers in the Sensex pack were Tata Steel, NTPC, Kotak Mahindra Bank, PowerGrid, Zomato, IndusInd Bank, Asian Paints, Reliance, M&M, UltraTech Cement, HDFC Bank, Nestle India, and SBI. On the other hand, Titan, HCL Tech, and Sun Pharma were among the few gainers.

Despite the sharp sell-off, some experts remain cautiously optimistic about the market’s near-term prospects. Karthick Jonagadla, Founder and CEO of Quantace Research, noted that Nifty has closed below its critical 200-day exponential moving average (200 DEMA) of 23,650. However, he expressed a constructive outlook, predicting a potential upside of 5-6% for the Nifty Index in the near term if key levels are reclaimed and market sentiment improves.