Sensex tanks 1,258 pts amid HMPV scare, growth concerns
Dragged by selling pressure, benchmark equity indices BSE Sensex and Nifty50, witnessed a sharp decline, settling down by over 1 per cent each. The 30-share Sensex tumbled 1,258.12 points or 1.59 per cent to settle at 77,964.99. Similarly, NSE Nifty50 also ended lower by 388.70 points or 1.62 per cent at 23,616.05.
Investors lose Rs 10.98 lakh cr
- Investors’ wealth tumbled Rs 10.98 lakh crore on Monday as markets crashed due to across-the-board selloff amid concerns over third-quarter earnings growth and foreign fund exodus
- From the 30-share blue-chip pack, Tata Steel, NTPC, Kotak Mahindra , Power Grid, Zomato, Adani Ports, IndusInd Bank, ITC and Reliance were among the biggest laggards
According to Santosh Meena, Head of Research, Swastika Investmart, the Indian equity markets witnessed a sharp decline today. The sell-off can be attributed to a rise in foreign institutional investor (FII) selling and concerns surrounding the upcoming Q3 earnings season.
As a result, the volatility index, India VIX surged 15.65% to 15.58, reflecting heightened market volatility. “ HDFC Bank and other key players posted headline figures that fell short of market expectations, raising concerns about the upcoming third-quarter earnings season. These disappointing results come at a time when the global macroeconomic environment is already weak, characterized by increased uncertainties and challenges,” said Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers.
Further compounding the situation, the emergence of a new HMPV virus variant has heightened investor unease, fueling fears of potential disruptions. This combination of factors led to a sharp market sell-off, diminishing investor confidence and dampening near-term market sentiment.
CA Jashan Arora, Director, Master Trust Group is of the view that the main concern of the market pressure has been the firms’ poor business updates, particularly those from banks and FMCG stocks.
According to experts, a stronger dollar and ongoing FPI selling have made the market decline worse. The strength of the US dollar and rising bond yields created a challenging environment for emerging markets.
