Stock Market Reacts to HMPV Cases in India
On Monday, investors in the stock market became cautious after India confirmed its first two cases of Human Metapneumovirus (HMPV) in Karnataka. As a result, the Sensex dropped more than 1,100 points, and the Nifty saw a decline of over 1%.
Increased Market Volatility
The India VIX, a measure of market volatility, surged by 13%. This increase reflected growing concerns among investors. A broad sell-off occurred, impacting mid and small-cap stocks. Key sectors like metals, PSU banks, real estate, oil and gas, and financials were the hardest hit.
Sharp Declines in Key Stocks
Union Bank of India shares plummeted by 7%. Other stocks, including Bank of Baroda, HPCL, BPCL, Tata Steel, Adani Energy Solutions, and PNB, dropped by 4-5%. Major companies like HDFC Bank, Reliance Industries, and Kotak Mahindra Bank also contributed to the overall Sensex drop.
HMPV News Caught Investors Off Guard
While earnings expectations and geopolitical concerns were already on investors’ radar, the announcement of India’s first HMPV case took the market by surprise. An 8-month-old baby in Bengaluru tested positive for the virus, prompting health officials to send samples for further analysis. This news came after reports of large crowds at hospitals in China, following an HMPV outbreak.
Government’s Response to HMPV Situation
India’s Health Ministry quickly responded, reassuring the public that the country was prepared for the situation. They stated that the events in China were “not unusual.” Additionally, the Indian Council of Medical Research (ICMR) confirmed that a previous case involving a 3-month-old baby had already been discharged.
