The markets are under pressure. The Nifty 50 slumped 1.6%, or over 400 points, to as much as 23,601.50. While the BSE Sensex plummeted more than 1,200 points, or 1.6%, to as low as 77,959.95. The broader markets are down over 2% with the Nifty Midcap Index hovering around 56,750.
Here are 4 reasons why the markets are falling today Fear of the HMPV virus hitting the economy
The fear of another Covid-like virus causing havoc has sent panic waves amongst investors. The centre said that two cases of HMPV have been detected by the Indian Council of Medical Research (ICMR) in Karnataka. According to the Health Ministry, both cases were identified through routine surveillance for multiple respiratory viral pathogens. Unconfirmed reports suggest that China has declared a state of emergency and the cases are surging in Malaysia too. Several state Governments including Maharashtra and Karnataka have issued precautionary guidelines. While it is still early to gauge the exact economic impact of this virus, the uncertainty surrounding this new virus and the potential fall out is what is worrying investors at the moment.
Also ReadHMPV in India: ICMR detects two cases in Karnataka with no travel history Continued FII selling
The FIIs have sold over 4,500 crore in January. Market veteran Deepak Jasani said that more than the detection of the two HMPV cases in Karnataka, the markets are worried about the FPI selling. “The FPI selling continues as they may not be finding Indian markets attractive at current valuations,” said Jasani. Till the macro and micro growth rates in India start to improve, the country may not see too much of an improvement in FPI flows and market movement.
Also Read Concord Enviro shares slip 1.32% on BSE after 18% premium debut; Market valuation at Rs 1,700.51 crore Are markets closed on December 25, 2024? Are markets closed on December 25, 2024? Rising market, falling brokers HDFC Bank
The stock with the highest weightage (in Nifty 50) in its quarterly update reported that its deposits growth outpaced the growth of loans by a wide margin. The private lender’s deposits grew by 15.8% year-on-year while its loans grew by 3%, according to the provisional numbers. Following this, the stock of HDFC Bank fell 2.2% to an intra-day low of Rs 1,710.60./
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