Stock market crash: Sensex falls 1,200 points from day’s high, Nifty falls 1.3% as Q3 earnings decline All sectors in red
Indian stock markets fell sharply after the government confirmed two cases of human metapneumovirus (HMPV) in Karnataka, along with reports of an outbreak of the chaotic virus in China. Consequently, investors took a cautious approach, resulting in significant selling. The BSE Sensex fell over 1,100 points, while the Nifty shed about 1.4 percent.
The India VIX, a measure of market volatility, rose 13 percent as mid- and small-cap stocks as well as across sectors saw broad selling pressure. The 30-share BSE benchmark fell 1,263.16 points, or 1.59 per cent, to an intraday low of 77,959.95. The broader NSE Nifty also fell 403.25 points or 1.67% to hit an intraday low of 23,601.50.
The market capitalization of all listed companies on BSE fell by Rs 9.92 lakh crore to Rs 439.86 lakh crore.
All sectors faced selling pressure, with the Nifty Metals Index down 2.66%, the Nifty PSU Bank Index down 3.35%, and the Nifty Auto Index down 1.68%, reflecting market-wide weakness.
Vinod Nair, head of research at Geojit Financial Services, attributed the sharp selloff to “rally sentiment on selling” driven by a stronger US dollar and higher stock prices. Quarterly earnings provide fresh guidance.
Dr VK 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 US bond yield at 4.62 percent, the global environment is unfavorable. FIIs are likely to continue selling until these factors stabilize,” he noted.
Factors Triggering Today’s Market Crash
While investors were already focused on corporate earnings and the upcoming Q3 results season, as well as ongoing geopolitical developments, news of HMPV cases in India emerged as an unexpected trigger for the market bearishness. come on
The Union Health Ministry confirmed the detection of two cases of HMPV in Karnataka, which were identified through routine surveillance for respiratory viral pathogens. Both cases involved infants—a 3-month-old girl who was discharged after recovery, and the other an 8-month-old boy who is currently recovering.
The ministry assured that there was no cause for alarm, as both cases were detected as part of ongoing surveillance efforts. He emphasized that China’s situation related to the flu season is not unusual, and that the increase is due to common pathogens such as 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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