Mon Jan 06 18:29:53 IST 2025: ## Indian Markets Plunge on HMPV Concerns and Global Uncertainty

**Mumbai, January 6, 2025** – Indian markets experienced a significant sell-off today, with the Sensex plummeting 1,258 points to 77,965 and the Nifty 50 shedding 389 points to close at 23,616. The broader market underperformed, with the Nifty Smallcap 100 index falling more than 3%. All sectoral indices ended in the red, with Nifty PSU Bank down a sharp 4%. The Nifty breached key 20-DMA and 50-DMA levels.

Concerns over the human metapneumovirus (HMPV) outbreak are cited as the primary driver of the domestic market’s decline. Adding to the negative sentiment are global uncertainties, including new US economic policies, the Federal Reserve’s hawkish stance on interest rates, potential inflation increases in 2025, and a strong US dollar. Vinod Nair, Head of Research at Geojit Financial Services, attributed the domestic market’s underperformance relative to global markets to premium valuations and concerns about HMPV, while noting that initial Q3 earnings suggest a potential gradual recovery in corporate earnings.

Several individual stocks contributed to the downturn. Union Bank of India fell nearly 8% following its December quarter business update, while Kotak Mahindra Bank slumped over 3% after executive resignations. ITC’s demerged hotels business dropped 8%, and Dabur and Marico declined following their quarterly updates. However, some stocks bucked the trend, with Nykaa and Titan rising on strong Q3 results. Easy Trip Planners also saw gains following a statement by its CEO.

The rupee hit a record low of 85.83 against the US dollar. Market breadth was heavily negative, with the advance-decline ratio at 1:9, and BSE companies erased nearly ₹10 lakh crore in market capitalization. Oil marketing companies (OMCs) faced pressure as Brent crude climbed above $96 per barrel.

Despite the overall negative trend, some positive news emerged. Metropolis Healthcare reported double-digit revenue growth, and LTIMindtree received a double upgrade from Jefferies. Several brokerage firms issued buy recommendations on various stocks. Gold prices remained relatively stable.

The sharp decline follows a negative Friday session, extending the two-day drop to over 500 points for the Nifty 50. The downturn impacted a wide range of sectors, with PSU banks and financials particularly under pressure. Andhra Paper declared a lockout at its Rajahmundry unit following a worker strike. Despite the negative day, Morgan Stanley maintains a bullish outlook, forecasting a Sensex target of 105,000 by year-end.

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