Stock Market plunges as HMPV cases surface in India amid China's virus outbreak

The Indian stock market witnessed a sharp decline on Monday following the detection of two Human Metapneumovirus (HMPV) cases in Bengaluru, amidst reports of a severe virus outbreak in China. Investor sentiment turned cautious, triggering a massive sell-off across sectors.

Also read: Two cases of HMPV detected in Bengaluru

The Sensex plummeted over 1,200 points, hitting a low of 77,960, while the Nifty dropped 1.4% to hover near the 23,600 mark. The volatility index, India VIX, surged by 10%, reflecting heightened market anxiety.

Key sectors bore the brunt of the downturn, with metals, PSU banks, real estate, oil and gas, and financials suffering the most. Union Bank of India shares plunged 7%, while other prominent players like Bank of Baroda, HPCL, BPCL, Tata Steel, Adani Energy Solutions, and PNB witnessed losses ranging from 4% to 5%.

Market heavyweights were not spared either, with HDFC Bank, Reliance Industries, and Kotak Mahindra Bank dragging the indices further.

The sell-off extended to mid-cap and small-cap stocks, amplifying the market's woes. Experts attribute the panic to growing concerns over the potential economic impact of the virus outbreak in China and the emergence of HMPV cases in India.

While health authorities are closely monitoring the situation, market analysts advise caution, warning that further volatility could ensue as investors assess the potential ramifications of the evolving health crisis.