The Indian stock market witnessed a sharp decline as both Sensex and Nifty 50 dropped over 1.5%, driven by mounting concerns over the Human Metapneumovirus (HMPV) scare, global economic uncertainty, and heavy selloffs by Foreign Institutional Investors (FIIs). Recent HMPV cases in Bengaluru have sparked investor anxiety, while weak global market cues, fueled by recession fears and geopolitical tensions, added to the turmoil.
Adding to the downward spiral were concerns over slower-than-expected economic growth projections and profit booking after recent market highs. Sectoral indices took a hit, with banking, IT, and auto stocks suffering significant losses. Midcap and small-cap indices also recorded sharp corrections, indicating broader market weakness and increased risk aversion.
Market analysts expect volatility to persist in the short term and have advised investors to tread cautiously amid ongoing global and domestic uncertainties.
