Markets plunge on HMPV fears, Sensex down 1,258 pts

The Indian equities faced significant pressure at the start of the week on Monday, with benchmark indices dropping nearly 1.5% on January 6 as concerns over the Human Metapneumovirus (HMPV) outbreak dampened investor sentiment. At close, the Sensex was down 1,258.12 points or 1.59 percent at 77,964.99, and the Nifty was down 388.70 points or 1.62 percent at 23,616.05.
Apollo Hospitals, Tata Consumer, Titan Company, HCL Technologies were the top gainers on the Nifty, while losers included Tata Steel, Trent, Coal India, NTPC and BPCL.
On the sectoral front, all the sectoral indices ended in the red with PSU Bank down 4 percent, while metal, realty, energy, PSU, power and oil & gas down 3 percent each. Broader indices underperformed with BSE Midcap index fell 2.4 percent and Smallcap index down 3 percent, according to information.
Rupee Close: 
On 6 Jan'25,the Indian rupee declined 4 paise to settle at a fresh record low of 85.83  against the U.S. dollar on Monday, amid a steep fall in domestic equity markets and unabated outflow of foreign capital.Forex traders reportedly stated the surging U.S. bond yields and concern over HMPV virus outbreak triggered a U.S. dollar chase due to its safe-haven appeal.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,emerging markets are undergoing consolidation due to uncertainties surrounding new US economic policies, the Fed's hawkish stance on future rate cuts, potential upward revision for CY25 inflation, and a strong dollar, all of which are negatively impacting market sentiment. The primary catalyst for a sharp sell-off in the domestic market appears to be concerns over the human metapneumovirus (HMPV).
Additionally, the initial Q3 consensus earnings estimate suggests a potential gradual recovery in domestic corporate earnings, which could explain the domestic market's underperformance compared to global markets led by premium valuation.
Market experts have recommended five stocks to buy-GAIL India Ltd., Shriram Finance Ltd., Aditya Birla Capital Ltd., Authum Investment & Infrastructure Ltd, and Titan Company Ltd.

(Business Correspondent)