Indian stock market benchmarks—the Sensex and the Nifty 50—recorded decent gains of over half a per cent each in intraday trade on Tuesday, January 7, appearing poised to end their two-day losing streak. In the last two sessions, the Sensex and the Nifty 50 had fallen over 2 per cent each, primarily because of sustained selling by foreign institutional investors amid a sustained rise in the US bond yields and rising cases of the HMPV virus.
Market sentiment received a fresh blow after concerns emerged over the spread of the HMPV virus, reminding the early days of the COVID-19 pandemic.
As Mint reported, Indian authorities confirmed the detection of several human metapneumovirus (HMPV) cases on Monday amid growing concern about the respiratory virus. Two cases were reported from Bengaluru in Karnataka, while a third tested positive after being hospitalised in Gujarat. The development comes even as China and other countries battle a major viral fever and pneumonia outbreak.
Track Live Updates of HMPV Cases Here
While the spread of HMPV cases remains in the focus of investors, the Indian stock market witnessed a relief rally on Tuesday, with the Sensex rising nearly 500 points during the session.
The rally was stronger in the mid and small-cap segment as the BSE Midcap and Smallcap indices rose over a per cent each.
Why is the Indian stock market rising?
The market is witnessing buying at lower levels as reports of the virus not being as fatal as COVID-19 emerged. The government has clarified that people should take precautions but should not be highly worried about the virus, as the infection is a seasonal disease.
“Health experts have clarified that HMPV is not a new virus. It was first identified in 2001 and it has been circulating in the entire world since many years. HMPV spreads through air, by way of respiration. This can affect persons of all age groups. The virus spreads more during the winter and the early spring months,” Health Minister JP Nadda issued a statement on Monday.
Experts believe the sharp fall of over 1 per cent in the previous session was an overreaction to the HMPV virus cases.
