Tue Jan 07 14:20:00 IST 2025: ## Indian Stock Market Plunges on Virus Fears, Weak Earnings, and FPI Selling
**MUMBAI, INDIA** – India’s stock markets experienced a sharp downturn on Monday, with the Sensex and Nifty indices plummeting by 1.6% amid growing concerns over the human metapneumovirus (HMPV), disappointing corporate earnings projections, and persistent selling by foreign portfolio investors (FPIs).
The Sensex closed at 77,964.99, down 1,258.12 points (1.59%), while the Nifty 50 ended at 23,616.05, a decrease of 388.7 points (1.62%). The total market capitalization of BSE-listed companies shed a significant Rs 10.98 lakh crore (approximately $1.33 billion USD), falling to Rs 438.79 lakh crore.
The emergence of HMPV cases in India, with three confirmed infections reported in infants, contributed to the negative sentiment. Analysts suggest market volatility will likely persist until concerns surrounding the virus subside.
Further dampening market spirits were predictions of muted third-quarter corporate earnings, attributed to sluggish government spending and weak consumer demand. This fueled further selling by FPIs, who offloaded Rs 2,575.06 crore (approximately $311 million USD) worth of Indian shares on Monday. While domestic institutional investors countered this with purchases of Rs 5,749.65 crore (approximately $700 million USD), the overall impact remained bearish. January’s FPI sell-off already totals Rs 7,160 crore, driven by a stronger dollar, higher US bond yields, and expectations of weak quarterly results.
All major sectoral indices experienced profit-booking, with public sector banks and capital markets suffering the most, declining over 3.5%. Both Nifty and Bank Nifty fell below their 200-day moving averages.
Market analysts predict continued volatility, with a potential further decline unless the indices break above key support levels. Investors are now looking towards next month’s Union Budget for government initiatives to stimulate demand and address global economic challenges.
First Piper 