Stock market investors decided to be cautious after the Indian government confirmed two Human Metapneumovirus (HMPV) cases in Karnataka and one in Gujarat, amid concerns of a virus outbreak wreaking havoc in China. As a result, the Nifty lost almost 1.6% and the Sensex closed the day down about 1,258 points.
A massive sell-off in mid- and small-cap stocks, as well as in other sectors, caused the India VIX, a fear gauge index, to spike 16%. The Nifty fell to 23,616 while the Sensex finished below the 78,000 mark. The industries most severely impacted were metals, PSU banks, real estate, oil and gas, and finance. While shares of IREDA, Adani Energy Solutions, Bank of Baroda, HPCL, SJVN, IRFC, YES Bank, and RVNL closed roughly 5–7% lower, Union Bank of India’s shares dropped 8%.
With declines of up to 4.41%, stocks including Tata Steel Ltd., NTPC, Kotak Bank, PowerGrid, Zomato, Adani Ports, IndusInd Bank, Asian Paints, and ITC were the biggest losers on the Sensex. The only companies to benefit were Titan, HCL Technologies, and Sun Pharma, which increased by 0.60%. Today, 113 shares saw their 52-week lows and 176 stocks reached their 52-week highs. Of the 4244 equities that were traded, 656 were in the green and 3474 were in the red, indicating a negative market breadth. Approximately 114 stocks remained unaltered.
Why Did Markets Decline In Monday’s Trade?
Vice President, Head of Derivatives and Technical Research at Centrum Broking Ltd., Nilesh Jain, told Outlook Money that the market’s loss was due to an overreaction to reports of an increase in HMPV virus cases in China. However, a “relief rally” occurred in the markets after the Union Ministry of Health published an advice stating that there is no reason for public alarm regarding HMPV.
