Market Today: Indian stock markets witnessed huge turmoil at the beginning of the week. The fear of Human Metapneumo Virus (HMPV) has had a negative impact on investor sentiment. Today on January 6, the benchmark index fell by 1.5 percent. After a positive start to the day, the market lost all gains due to profit-booking in the initial hours and the market declined further as the day progressed. Nifty went below 23,600. During this period there was selling in all sectors. The PSU Bank index fell nearly 4 per cent after its quarterly trading performance.
At the end of the trading session, Sensex fell 1,258.12 points or 1.59 per cent to 77,964.99 and Nifty fell 388.70 points or 1.62 per cent to 23,616.05. The biggest losing stocks in Nifty included Tata Steel, Trent, Coal India, NTPC and BPCL. Whereas the profitable stocks included Apollo Hospital, Tata Consumer, Titan Company, HCL Technologies.
Aditya Gaggar, Director, Progressive Shares It is said that due to renewed fears regarding the new virus, there was a decline in the market. Due to which the index declined. Selling pressure increased in the second half of the trading session. Due to which Nifty closed at the level of 23,616.05 after a sharp fall of 388.70 points. Today all sectors closed in the red. PSU bank and energy stocks fell the most. Small-medium stocks were particularly hard hit. Due to this, mid and small-cap stocks fell significantly. They underperformed the Frontline Index.
Daily Chart A strong bearish candlestick indicates that Nifty is moving towards its previous support zone of 23,260-23,460. On the upside, resistance is visible at 23,900.
Morgan Stanley on India: Morgan Stanley expressed full confidence in India, gave a target of 1,05,000 for Sensex, underweight on healthcare.
Fisdom’s Research Head Nirav Karkera Said that the first case of HMPV virus has been identified in India recently. Its onset coincides with the ongoing flu season, making it difficult to gauge the extent to which the disease may spread. However, the Union Health Ministry has assured preparedness to prevent any spread of respiratory diseases. We have to keep an eye on this situation.
He further said that it is expected that any negative reaction from the market will be limited to sudden reaction only. In the event that no other major incidents of virus spread are identified or reported, limited market decline can be expected.
Disclaimer: The views expressed on Moneycontrol.com are the personal views of the experts. The website or management is not responsible for this. Money Control advises users to seek the advice of a certified expert before taking any investment decision.