Dalal Street witnessed intense selling pressure on Monday, dragging key indices sharply lower amid growing concerns over third quarter earnings and the new HMP virus scare.
Extending losses, the 30-share BSE benchmark Sensex tanked 1,258.12 points or 1.59 percent to close below the 78,000 level at 77,964.99. During the day, it plunged 1,441.49 points or 1.81 percent to 77,781.62.
The NSE Nifty slumped 388.70 points or 1.62 percent to 23,616.05. During the day, it skid 452.85 points or 1.88 percent to 23,551.90.
The market capitalisation exceeding Rs 9.5 lakh crore was eroded — the steepest single-day fall in three months.
The Nifty Smallcap 100 dropped 645.15 points to an intraday low of 18,388.55, while the Nifty Midcap 100 tanked 1,743.25 points, settling at 56,187.80 during the day.
Sectoral indices showed widespread weakness, with the Nifty Metal index leading the losses, declining 3.32 percent, followed closely by the Nifty Realty index, which fell 3.29 percent. The banking space was not spared either, as the Nifty Bank index slumped 1,200 points, or 2.24 percent, under pressure from heavyweights.
The India VIX, a measure of market volatility often referred to as the fear gauge, spiked over 16 percent, reflecting heightened nervousness among investors.
Nifty index slid below its 200-day exponential moving average (200 DEMA), closing at 23,616.05. The selling pressure was widespread, with metal, energy, and realty sectors leading the losses. Broader indices also faced significant pressure, recording losses of 2.7 to 3.1 percent.
"Markets experienced a sharp decline, erasing over one and a half percent of recent gains. After an initial uptick, the benchmarks tumbled sharply, driven by few weak quarterly updates from the banking sector and concerns over new virus (HMPV) cases reported in India," added Ajit Mishra – SVP, Research, Religare Broking Ltd.
Tata Steel, NTPC, Kotak Mahindra Bank, IndusInd Bank, Power Grid, Zomato, Adani Ports, Asian Paints, Mahindra & Mahindra and Reliance Industries were among the biggest laggards. Titan and Sun Pharma were the only gainers.
Vinod Nair, Head of Research, Geojit Financial Services, noted "the primary catalyst for a sharp sell-off in the domestic market appears to be concerns over the human metapneumovirus (HMPV). Additionally, the initial Q3 consensus earnings estimate suggests a potential gradual recovery in domestic corporate earnings, which could explain the domestic market's underperformance compared to global markets led by premium valuation."
"Emerging markets are undergoing consolidation due to uncertainties surrounding new US economic policies, the Fed's hawkish stance on future rate cuts, potential upward revision for CY25 inflation, and a strong dollar, all of which are negatively impacting market sentiment," he added.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,227.25 crore on Friday.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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