Doing due diligence for F&O and never give omnibus approvals. Be a smart investor by making informed choices. #NSE #NSEIndia #InvestorProtection #InvestorAwareness #InvestWisely pic.twitter.com/2GTavIPEZP
— NSE India (@NSEIndia) January 4, 2025
The Indian stock market experienced a significant downturn on January 6, 2025, with the Sensex plummeting by 1,258.12 points to close at 77,964.99 and the Nifty dropping 388.70 points to settle at 23,616.05. The market crash was primarily driven by fears surrounding the detection of human metapneumovirus (HMPV) cases in Karnataka and Gujarat. Investor concerns about the potential economic repercussions of the HMPV outbreak led to a widespread sell-off across various sectors and market capitalization segments.
The fear gauge index, India VIX, jumped 10% as intense selling pressure affected top stocks and sectoral indices. All sectors were in the red, with PSU Banks being hit the hardest, falling by 4%. Other sectors, including metal, realty, energy, power, and oil & gas, also experienced declines of around 3%.
AAII bulls lowest since April '24
NAAIM largest 4 wk drop since April '24Number of stocks in S&P 500 to hit a 10-day high up to 104 on Friday, most in over a month. 🤔
— Ryan Detrick, CMT (@RyanDetrick) January 5, 2025
The BSE Midcap index fell by 2.4%, while the Smallcap index dipped by 3%.
ITI share price: PSU stock hits all time high! soars 19% in 1 day; What to do with telecom stockhttps://t.co/4Ev2fcjMYD
— ET NOW (@ETNOWlive) January 6, 2025
Sensex turmoil amid HMPV outbreak fears
Among Nifty constituents, Tata Steel, Trent, Coal India, NTPC, and BPCL were the biggest losers, while Apollo Hospitals, Tata Consumer Products, Titan Company, and HCL Technologies managed to register gains despite the wider market downturn.
#MarketAlert | Nifty Bank down 2.2% dragged by Bank of Baroda and Federal Bank
Nifty Bank registers biggest intraday fall in 5 months since 5 Aug 2024
All the constituents of the index are in red#NiftyBank #StockMarket pic.twitter.com/k35Pps6qyv
— ET NOW (@ETNOWlive) January 6, 2025
Vinod Nair, Head of Research at Geojit Financial Services, attributed the market’s sharp decline to fears surrounding the HMPV and broader economic uncertainties. Prashanth Tapse, Senior VP (Research) at Mehta Equities, raised concerns about the forthcoming third quarter earnings, which are expected to be muted for several sectors due to weak government spending and subdued demand. Investors are anxiously awaiting next month’s Union Budget announcement, which is expected to outline measures to boost demand and tackle global challenges.
The Indian rupee ended the day marginally lower, at 85.82 per dollar, slipping by 4 paise compared to Friday’s close of 85.78. Today’s market downturn reflects heightened investor anxiety driven by both domestic and global factors. With key economic policy announcements and the Union Budget on the horizon, market participants are expected to remain cautious in the near term.
