Stock market crash: Sensex falls 1258 points, Nifty hits 23616 amid China HMPV virus concerns

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Indian stock markets witnessed a sharp downturn on Monday, with the benchmark indices Sensex and Nifty both plunging by over 1.5%, primarily due to a broad-based selloff. The drop in the indices was driven by rising concerns over third-quarter earnings growth, coupled with sustained foreign fund outflows, which dampened investors' risk appetite.

Adding to the market woes were fears surrounding the new HMPV virus, the depreciation of the rupee, and weak trends across Asian markets, all of which contributed to the overall negative sentiment. The 30-share BSE Sensex sank 1,258.12 points, or 1.59%, to settle at 77,964.99, closing below the 78,000 mark. At one point during the day, the index plunged even further, down 1,441.49 points, or 1.81%, to 77,781.62. Similarly, the NSE Nifty fell 388.70 points, or 1.62%, to end the day at 23,616.05.

Among the prominent stocks in the Sensex pack, Tata Steel, NTPC, Kotak Mahindra Bank, IndusInd Bank, Power Grid, Zomato, Adani Ports, Asian Paints, Mahindra & Mahindra, and Reliance Industries were among the major laggards, leading the market decline. However, Titan and Sun Pharma were the only two stocks that managed to close in the green.

Experts attributed the steep fall to multiple factors, including the rise in Foreign Institutional Investor (FII) selling, which amounted to Rs 4,227.25 crore on Friday. Santosh Meena, Head of Research at Swastika Investmart, stated, "The Indian equity markets are experiencing a sharp decline today, with both the Nifty and Bank Nifty slipping below their 200-day moving averages. This sell-off is largely due to growing concerns over the upcoming Q3 earnings season, alongside heightened fears related to the new HMPV virus."

Asian markets also faced a mixed session, with Seoul closing higher, while Tokyo, Shanghai, and Hong Kong ended in the red. European markets traded in a mixed fashion, while US markets had ended positively on Friday.

Meanwhile, global oil prices witnessed a slight dip, with the Brent crude benchmark slipping by 0.25% to $76.32 per barrel. On Friday, the BSE Sensex had already experienced a decline of 720.60 points, or 0.90%, closing at 79,223.11, while the Nifty had dropped 183.90 points, or 0.76%, to end at 24,004.75.

PTI reports indicate that the market continues to grapple with volatility, and concerns over the economic outlook are expected to remain a key focus in the coming days.

(With inputs from PTI)