Share Market: After a day’s rise, the Indian stock markets again fell on Wednesday, January 8. Sensex fell by 500 points in early trade. Nifty also fell below 23,600. Earlier this week too, a major earthquake was seen in the stock market, when the news of cases of HMPV, a new virus like Corona spreading in China, was found in India. A total of 8 cases have been found so far in India. Market experts say that this virus has further shaken the already weak sentiment of the stock market, due to which investors are selling.
Many investors have started comparing the impact of this virus with the Corona epidemic, which caused huge losses to stock markets around the world including India in 2020. Although experts say that this time the situation is not that serious, but there is definitely an atmosphere of fear in the market. He said that this time apart from the virus, many other reasons are also contributing to the decline, which is troubling investors. This includes reasons like continuous selling by foreign investors, decline in earnings growth of companies, expensive valuations and high interest rates.
What do the experts say?
Motilal Oswal AMC MD & CEO Prateek Aggarwal said that there is panic in the stock market due to the new virus. He said, “There has been a reaction in the market due to the new virus. Investors did panic selling.” However, due to this, Prateek Aggarwal has advised to look at any major fall in the market as a buying opportunity.
He said, “What I understand right now is that this virus is just like a normal flu. The government has also said something similar. In such a situation, if there is a big fall in the market due to this, then This should be seen as a buying opportunity. Domestic institutional investors (DIIs) are continuing to buy on dips. This is going to be their strategy going forward as well.”
Anuj Gupta, Head of Commodities and Currencies, HDFC Securities, expressed a similar view. He said that it is too early to say whether the stock market will see a decline like the Covid period due to the HMPV virus. We should wait for some more time for the picture to become clear. Other experts are also advising investors to remain cautious and keep an eye on the market situation.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “There is an environment of fear in the market because it is difficult to assess the impact of HMPV. But the market may stabilize after the Q3 results.” Manish Choudhary, head of research at Stocksbox, said, “Market sentiment may be slightly dampened by the initial cases of HMPV virus detected in India, but its impact is expected to be limited as it appears to be much less lethal than the Covid virus. Is.”
When Sensex fell 13% in one day
The Indian stock market witnessed a huge decline during the Corona virus epidemic. In the first three months of the year 2020 – January, February and March, the stock markets closed in the red. After the lockdown was announced on March 23, 2020, Sensex and Nifty crashed by about 13% in a day. The Sensex fell 3,934.72 points (13.15%) on the day to close at 25,981.24, while the Nifty fell 1,135.20 points (12.98%) to close at 7,610.25.
If we talk about the entire month of March 2020, the Nifty-50 index had fallen by 23.25 percent in that month. This was the biggest fall in the stock market in a single month since December 2011. Earlier in February 2020 and January 2020, Nifty index had closed with a decline of 6.36 per cent and 1.36 per cent respectively.
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