Mon Jan 06 12:34:15 UTC 2025: ## Indian Markets Plunge on Weak Earnings, HMPV Cases
**MUMBAI, INDIA** – Indian stock markets experienced a sharp downturn on Monday, with the benchmark Sensex and Nifty50 indices plummeting over 1.5% each. The sell-off, which erased Rs 11.85 lakh crore (approximately $143 billion USD) from the market capitalization of BSE-listed companies, was attributed to disappointing quarterly earnings from several major companies, particularly in the banking and consumer sectors, coupled with the announcement of three Human Metapneumovirus (HMPV) cases in the country.
The Sensex closed at 77,964.99, down 1,258.12 points (1.59%), while the Nifty50 ended at 23,616.05, a decrease of 388.70 points (1.62%). All sectors felt the pressure, with significant declines observed in metal, PSU banks, and auto stocks.
Analysts cited several factors contributing to the market’s decline. Vinod Nair of Geojit Financial Services attributed the sell-off to a “sell-on-rally” sentiment fueled by a strong US dollar and high stock valuations, suggesting market direction will remain uncertain until the release of third-quarter earnings. Dr. V K Vijayakumar of the same firm pointed to unfavorable global macroeconomic conditions, including a high US dollar index and bond yields, as further contributing to Foreign Institutional Investor (FII) selling pressure.
Adding to the market’s anxieties was the confirmation by the Union Health Ministry of two HMPV cases in Karnataka, involving infants. While the Ministry emphasized that the situation is under control and not cause for alarm, the news served as an unexpected trigger for the sell-off, particularly given the recent surge in respiratory illnesses in China. The Ministry announced plans to expand HMPV testing and monitoring nationwide as a precautionary measure.
First Piper 