Share Market Crash / The market shuddered due to the entry of Chinese virus, investors lost Rs 11 lakh crore

On Monday, the stock market witnessed a huge decline due to the HMPV virus and other factors. The Sensex closed down 1,258 points at 77,964, while the Nifty fell 388 points to 23,616. Foreign investors' selling and the weakness of the rupee led to a loss of about 11 lakh crores to investors.

Vikrant Shekhawat : Jan 06, 2025, 06:30 PM

Share Market Crash: On Monday, the Indian stock market witnessed a huge decline, the main reason behind which is believed to be the impact of the HMPV virus coming from China. Confirmation of two cases in Karnataka and one in Gujarat created panic among investors. Due to this, the major indices of both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) closed with a decline of more than one and a half percent.

Major reasons for the decline

Although the news of the Chinese virus increased volatility in the stock market, other economic reasons also contributed to the decline:

Fall in Rupee: Rupee weakening against the dollar.

Foreign investor selling: Continuous selling pressure by FIIs (foreign institutional investors).

Fall in Asian markets: Average decline of 1.40% across Asia.

Fed policy and budget uncertainty: Uncertainty about upcoming economic policies.

Impact on Sensex and Nifty

Sensex:

On Monday, the Sensex closed down 1,258.12 points at 77,964.99. It opened at 79,281.65 and fell 1,441.49 points during the day to reach 77,781.62. In the last two trading days, the Sensex has fallen 1,978.72 points.

Nifty:

Nifty also saw a decline of 388.70 points, and closed at 23,616.05. Nifty touched a low of 23,551.90 during the trading session. Nifty has suffered a decline of 572.6 points in the last two days.

Major stocks with decline and rise

Decliner:

TATA Steel: 4.60% decline.

Trent: 4.35% decline.

BPCL and NTPC: More than 3.60% decline.

Adani Enterprises: 3.61% decline.

Rise:

Apollo Hospital: 1.94% rise.

Tata Consumer: 1.12% up.

Titan: 0.72% up.

HCL Tech and ICICI Bank: Marginal increase.

Huge losses to investors

Due to this decline, the market cap of BSE fell by Rs 10,98,723.54 crore to Rs 4,38,79,406.58 crore. On Friday it was Rs 4,49,78,130.12 crore.

Further forecast

The direction of the stock market will now mainly depend on the policy of the Federal Reserve, the Union Budget, and the quarterly results of companies. Experts say that the market may see more volatility.

Result

The Chinese HMPV virus and other economic factors have shaken the Indian stock market. Investors are being advised to remain cautious and adopt a long-term investment approach.