Stock market crash today: Why BSE Sensex, Nifty50 tanked in trade – from FII selloff to HMPV concerns – top reasons

Stock market crash today: Stock market indices BSE Sensex and Nifty50 crashed in trade on Friday driven by widespread selling pressure. Investors’ confidence was affected by worries about third-quarter earnings performance and continuous foreign investment outflows. The situation was further complicated by the emerging HMPV infection concerns, weakening rupee, and poor performance in Asian markets.
The BSE Sensex dropped significantly by 1,258.12 points or 1.59 per cent, closing at 77,964.99, falling below the 78,000 mark. During trading hours, it experienced a steep fall of 1,441.49 points or 1.81 per cent to 77,781.62. The NSE Nifty declined by 388.70 points or 1.62 per cent to 23,616.05.
Among the major BSE components, significant losses were seen in Tata Steel, NTPC, Kotak Mahindra Bank, IndusInd Bank, Power Grid, Zomato, Adani Ports, Asian Paints, Mahindra & Mahindra and Reliance Industries. Only Titan and Sun Pharma showed positive movement.

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Why BSE Sensex & Nifty50 crashed today: Top Reasons

“The Indian equity markets are witnessing a sharp decline today, with both Nifty and Bank Nifty slipping below their 200-day moving averages (DMA). The sell-off can be attributed to a rise in Foreign Institutional Investor (FII) selling and concerns surrounding the upcoming Q3 earnings season. Additionally, fears related to the new HMPV have added to the bearish sentiment, triggering fresh rounds of selling after the recent counter-trend pullback rally,” Santosh Meena, Head of Research, Swastika Investmart, said.
India VIX, the fear gauge index, increased by 16% as extensive selling occurred across mid and small-cap stocks and various sectors.
FII sell-off: Foreign Institutional Investors withdrew Rs 4,227.25 crore worth of equities on Friday following a brief pause, as per exchange data.
HMPV concerns: Following the confirmation of two Human Metapneumovirus (HMPV) cases in Karnataka and one in Gujarat by the Indian government, amidst reports of a virus outbreak in China, investors adopted a cautious stance.
Earrings season: As the Q3 earnings season kicks off this week, investors are cautious about the tepid growth in major companies. A wait and watch approach is being adopted to track signs of earnings recovery.
In Asian markets, Seoul showed gains while Tokyo, Shanghai and Hong Kong declined. European markets displayed mixed results, whereas US markets closed positively on Friday.
The global oil benchmark Brent crude decreased by 0.25 per cent to USD 76.32 per barrel. Previously, the BSE benchmark had fallen by 720.60 points or 0.90 per cent to 79,223.11 on Friday, while the Nifty decreased by 183.90 points or 0.76 per cent to 24,004.75.