Sensex and Nifty Today Plunge Amid HMPV Panic: The key benchmark indices Sensex and Nifty ended lower for a second consecutive session as broad-based selling in the equity markets sparked volatility. Nifty opened marginally higher on Monday and after initial volatility indices declined sharply as the session progressed and closed near the day’s low.
The sharp fall in the market was due to the unexpected news that three human Metapneumovirus(HMPV) cases had been detected in India. Investors lost confidence, prompting panic reactions during the afternoon session.
Initially, the focus was on Q3 earnings and global events tied to the Trump presidency and geopolitical tensions. The unforeseen development of HMPV news created panic and heightened market volatility and played a role in the substantial losses.
Sensex and Nifty End Lower for Second Consecutive Session
The BSE Sensex declined 1258.12 points or 1.59% to 77964.99 levels at the close, while the Nifty price index plunged 388.70 points or 1.62% to 23616.05. The Tata Steel, Trent, Reliance, and HDFC Banks were the major drags. The broader market underperformed the benchmarks as the Nifty midcap index declined 2.70% while the Nifty smallcap index plunged 3.20% on Monday.
The market breadth was weak, on the NSE 244 shares rose, while 2169 shares declined on Monday. The NSE’s volatility index “India VIX” jumped 15.58% to 15.65 levels.
Economic News Impact on Indian Stock Markets
The HSBC India Services PMI was up from 58.4 in November to 59.3 in December, marking its best number in four months. Meanwhile, the country’s foreign exchange reserves declined by $4.112 billion to an eight-month low of $640.279 billion during the week ended Dec 27, according to the RBI data.
Market Outlook Tomorrow
The market sentiment is cautious and Bearish, Nifty has closed below 23650. The next support for the Nifty index is around 23450-23300 levels and the resistance is at 24000. Tomorrow the market will have stock-specific action.
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Editor’s Desk