Wed Jan 08 04:12:28 UTC 2025: ## Indian Stock Market Rebounds After HMPV-Driven Selloff

**Mumbai, India** – Indian benchmark indices, the Sensex and Nifty, staged a partial recovery on Tuesday, rebounding from Monday’s sharp decline fueled by concerns over the human metapneumovirus (HMPV). The Sensex gained 397.74 points (0.51%) to close at 78,362.73, while the Nifty climbed 165.05 points (0.7%) to reach 23,781.10. Market breadth was positive, with three stocks rising for every one that fell.

Analysts attributed Monday’s 1.6% drop in the Nifty to an overreaction to HMPV concerns, noting that strong domestic institutional investor (DII) buying (₹5,750 crore) offset foreign institutional investor (FII) selling (₹2,575 crore). The correction was also influenced by short-selling, exploiting the negative sentiment. However, the resilience of pharma and healthcare stocks suggested a limited impact from virus anxieties.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the government’s reassurance regarding HMPV, which is not a novel virus, should facilitate a market rebound, particularly among momentum stocks. He advised investors to capitalize on any dips to acquire fundamentally strong stocks in the automobile and financial sectors.

Positive news from the jewelry sector also contributed to the recovery. Titan Company Ltd. shares surged 3% after reporting strong Q3 sales growth, while Kalyan Jewellers India Ltd. saw a 5% increase following its positive quarterly results announcement. Other significant gainers included Adani Ports, Asian Paints, IndusInd Bank, and Reliance Industries.

Despite the rebound, analysts remain cautious. Akshay Chinchalkar, Head of Research at Axis Securities, highlighted that the Nifty needs to hold above 23,500 to sustain the recovery, with further resistance near 23,800. A fall below 23,500 could trigger renewed focus on November’s lows. However, options market data suggests that further declines are unlikely to be substantial.

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