Stock Market Crash: Sensex ends 1,258 points lower after 3 confirmed HMPV cases spook investors

After the Indian government confirmed two cases of Human Metapneumovirus (HMPV) in Karnataka and one in Gujarat, amid reports of a virus outbreak causing havoc in China, stock market investors chose to play it safe. As a result, the Sensex ended with a loss of about 1,258 points and the Nifty lost around 1.6%.

The fear gauge index, India VIX, jumped 16% as a widespread sell-off was seen across mid and small-cap stocks as well as in various sectors. The Sensex ended below 78,000-mark, while the Nifty tumbled to 23,616-level.

Metals, PSU banks, real estate, oil and gas and financials were among the worst-hit sectors. Union Bank of India shares fell 8% while IREDA, Adani Energy Solutions, Bank of Baroda, HPCL, SJVN, IRFC, YES Bank and RVNL ended around 5-7% lower.

Among heavyweights, HDFC Bank, Reliance Industries (RIL), and Kotak Mahindra Bank were among the biggest drags on the Sensex.

What triggered stock market crash today?

While investors were focused on tracking earnings updates and expectations around the Q3 results season, which begins this week, as well as developments surrounding the Trump presidency and geopolitical issues, the news about HMPV in India has caught them by surprise.

While confirming the detection of two HMPV cases in Karnataka, the Union Health Ministry said the cases were found through routine surveillance for multiple respiratory viral pathogens, as part of ICMR's ongoing efforts to monitor respiratory illnesses across India.

Both the cases are of infants who had no history of international travel. While the 3-month-old female infant, who was diagnosed with HMPV after being admitted to Baptist Hospital, Bengaluru with a history of bronchopneumonia, has been discharged, an 8-month-old male infant, who tested positive for HMPV on January 3, 2025, is now recovering.

Also read | HMPV cases in India: Health Ministry confirms two cases in Karnataka

"It is emphasized that HMPV is already in circulation globally, including in India, and cases of respiratory illnesses associated with HMPV have been reported in various countries. Furthermore, based on current data from ICMR and the Integrated Disease Surveillance Programme (IDSP) network, there has been no unusual surge in Influenza-Like Illness (ILI) or Severe Acute Respiratory Illness (SARI) cases in the country," the Health Ministry said.

In a statement, it said the ministry is monitoring the situation through all available surveillance channels.

"ICMR will continue to track trends in HMPV circulation throughout the year. The World Health Organization (WHO) is already providing timely updates regarding the situation in China to further inform ongoing measures. The recent preparedness drill conducted across the country has shown that India is well-equipped to handle any potential increase in respiratory illnesses and public health interventions can be deployed promptly if needed," the ministry said.

The stock market has already been impacted by FII outflows, which is already about half a billion dollars in January so far, according to NSDL data.

"The market is likely to be influenced by the negative factors impacting FII flows and some positive domestic factors which can support the market. The external macro construct continues to be unfavourable with the dollar index at 109 and the 10-year US bond yield at 4.62%. The FIIs are likely to continue selling till the yields decline and the dollar stabilizes," Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.