Share Market News / Market shaken by Chinese virus cases, investors lost Rs 10 lakh crore

Share Market News: Amid reports of a new virus in China, the country's first HMPV (human metapneumovirus) case in Bengaluru, India has increased concern across the country. The impact of this news was seen not only on the health sector but also on the stock market. The Sensex fell by more than 1,100 points, while the Nifty fell by about 1.4%. This unexpected decline forced investors in the stock market to suffer a loss of about Rs 10 lakh crore.

Concern of another virus after Covid

As life was returning to normal after the Covid-19 epidemic, reports of the arrival of another virus from China caused fear among investors and the general public. Confirmation of two cases of HMPV in Bengaluru increased panic in the market. As a result, the Bombay Stock Exchange (BSE) key index Sensex fell by 77,959.95 points, while the National Stock Exchange (NSE) Nifty is trading at 23,601.50 points.

The Sensex has fallen 1,983.76 points in two trading days after closing at 79,943.71 points on Thursday. Similarly, the Nifty has fallen 587.15 points in two consecutive days.

Impact on key sectors

This decline has hit key sectors like banking, real estate, oil and gas. PSU bank stocks like Punjab National Bank (PNB), Bank of Baroda, and Canara Bank declined by more than 4%. Apart from this, major companies like HDFC Bank, Reliance Industries, and Kotak Mahindra Bank also fell in this decline.

The biggest losers on the National Stock Exchange include Tata Steel (4.21%), BPCL (3.44%), and Kotak Bank (3%). However, select stocks like Apollo Hospital (0.66%) and Titan (0.30%) saw marginal gains.

Heavy losses to investors

This massive fall in the stock market has had a profound impact on the wealth of investors. On Friday, the market cap of BSE was Rs 4,49,78,130.12 crore, which fell to Rs 4,39,44,926.57 crore. In just a few hours, investors lost about Rs 10.33 lakh crore.

The total decline of the last two days has reduced the wealth of investors by more than Rs 11 lakh crore.

Way forward

Amid the news related to the virus, volatility in the stock market is likely to continue. Investors are advised to avoid making hasty decisions and focus on strategies to keep their portfolio safe for the long term. Health experts believe that if timely steps are taken to control the spread of the virus, stability can return to the market.

Conclusion

The HMPV virus has once again shown that the impact of global health crises is not limited to life and health, but it also has a direct impact on economic activities and investment. The government and the health department will have to remain vigilant so that this virus can be prevented from becoming an epidemic and the confidence of investors can be regained.