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Stock Market Crash: Sensex sheds 1,200 points from day’s high, Nifty falls 1.3% as Q3 earnings loom; all sectors in red
Stock Market Crash
Indian benchmark equity indices, Sensex and Nifty50, dropped more than 1.5% on Monday after initially opening higher, with private and state-owned banks, along with consumer stocks, leading the decline due to weak quarterly updates from major companies. The market downturn also followed the detection of three cases of Human Metapneumovirus (HMPV) in the country.
The BSE Sensex plunged over 1,400 points, falling below the 77,900 mark, while the Nifty50 lost more than 400 points, dipping below the 23,600 level.
The market capitalisation of all listed companies on BSE declined by Rs 11.85 lakh crore to Rs 437.93 lakh crore.
At close, the 30-share Sensex tumbled as much as 1,258.12 points or 1.59 per cent to settle at 77,964.99. The index traded in the range of 79,532.67–77,781.62 today.
Mirroring the Sensex, NSE Nifty50 also ended lower by 388.70 points or 1.62 per cent at 23,616.05. The Nifty50 recorded a day’s high of 24,089.95, while the day’s low was 23,551.90 on Monday.
All sectors faced selling pressure, with the Nifty Metal index falling 2.66%, the Nifty PSU Bank index dropping 3.35%, and the Nifty Auto index slipping 1.68%, reflecting the widespread weakness in the market.
Vinod Nair, Head of Research at Geojit Financial Services, linked the sharp sell-off to a “sell-on-rally sentiment” spurred by a strong U.S. dollar and high stock valuations. He suggested that the markets would likely remain directionless until third-quarter earnings provide fresh guidance.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed to external macroeconomic concerns as another factor. “With the dollar index at 109 and the 10-year U.S. bond yield at 4.62%, the global environment remains unfavourable. FIIs are likely to continue selling until these factors stabilize,” he noted.
Factors That Triggered Today’s Market Crash
While investors were already focused on tracking corporate earnings and the upcoming Q3 results season, as well as ongoing geopolitical developments, the news of HMPV cases in India came as an unexpected trigger for the market downturn.
The Union Health Ministry confirmed the detection of two HMPV cases in Karnataka, identified through routine surveillance for respiratory viral pathogens. Both cases involved infants—one a 3-month-old female who was discharged after recovering, and the other an 8-month-old male who is currently recovering.
The Ministry assured that there is no cause for alarm, as both cases were detected as part of ongoing monitoring efforts. It emphasized that the situation in China, linked to the flu season, is not unusual, and the surge is attributed to common pathogens like the Influenza virus, RSV, and HMPV.
As a precaution, the Ministry plans to expand HMPV testing and has tasked the Indian Council of Medical Research (ICMR) with year-round monitoring of HMPV trends in India.
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