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The stock market is witnessing a huge decline on the first Monday of the year. The market opened flat. But, Nifty slipped below 23,600 intraday. There was a pressure of more than 410 points in the index. All the stocks of the index were seen trading in the red. With today's decline, Nifty has now slipped about 10% from its peak of 26,277. In this way, the Indian market has once again reached correction mode.
Sensex also slipped 1350 points and was trading at 77,890. The total market capitalization of companies listed on BSE has seen a decline of about Rs 11 lakh crore today.
Nifty Bank was also seen slipping below 50,000 in intraday. There was a pressure of 1,225 points in Sensex. At the same time, the midcap index is also trading with almost the same decline. The volatility index was showing an increase from the initial trading. By 12 noon, India VIX has jumped by 17%. All-round selling is being seen in all sectors today. On the domestic front, the market opened at a flat level after the quarterly results of many companies. After this, selling pressure was seen once again. HDFC Bank, RIL, Kotak Mahindra Bank and M&M put the most pressure on Nifty - Sensex on Monday. ITC is also putting pressure on the major index amid the record date of demerger. However, after the quarterly update, Titan, Bajaj Finance, ICICI Bank are seeing a rise. Rise in diagnostic stocks After the first case of HMPV was reported in India, diagnostic stocks are seeing a rise today. Metropolis, Thyrocare, Vijaya Diagnostics and Dr Lal PathLabs are seeing a rise. Why the sharp fall in the market? 1.- HMPV virus reaches India - The HMPV virus that spread in China has now knocked in India as well. Two cases of virus infection have been found in Karnataka. One of them is a 3-month-old girl and the other is an 8-month-old child. After the case was found, the Karnataka Health Minister has called an emergency meeting. ICMR has said that there is no need to panic about this virus. There is no history of international travel in both the cases. 2.- Weak Q3 update of banks: After the market closed on Friday and on Saturday, many other banks including HDFC Bank have released December quarter updates. Due to these updates, banking stocks are under pressure due to concerns including slowdown in the loan growth of banks. 3.- Rupee weakens: Rupee continues to weaken against the dollar. Rupee was seen slipping below 80.80 per dollar. On Monday, the rupee opened at 85.78 with a weakness of 1 paisa against the dollar. 4.- Nifty breaks important technical levels: Nifty has broken important levels on the technical chart. Nifty and Nifty Bank have slipped below 200-DEMA. 5.- FIIs return from holidays: Foreign institutional investors have returned from the long Christmas and New Year holidays. On Friday, a big sell-off was seen in the cash and futures market by FIIs.
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