India's stock market surges as HMPV fears fade

On January 6, 2025, India's stock markets reported a positive performance, closing with notable gains as concerns regarding Human Metapneumovirus (HMPV) subsided following enhanced surveillance measures across the nation. The increase in the domestic benchmark indices was supported by favorable global trends and a significant buying interest across various sectors including metals, media, energy, commodities, public sector banks, financial services, pharmaceuticals, and fast-moving consumer goods (FMCG). The Sensex, a widely used stock market index, finished the day at 78,199.11, reflecting an increase of 234.12 points or 0.30 percent. In parallel, Nifty also experienced growth, closing at 23,707.90, which marked a gain of 91.85 points or 0.39 percent. Furthermore, the Nifty Bank index rose by 280.15 points or 0.56 percent, concluding the session at 50,202.15. Market participants reported that overall trading remained within ranges as investors braced for the impending release of the first advance estimates for India's fiscal year 2025 GDP, a critical indicator anticipated to guide future economic outlooks. Despite the upward trends observed, certain sectors such as automobiles, information technology, and consumer segments experienced declines. Notably, prominent companies within the Sensex pack including Tata Motors, ICICI Bank, Asian Paints, Nestle India, and Hindustan Unilever Limited were among the gainers. Although the market displayed resilience, concerns lingered due to the previous session's sell-off, where foreign institutional investors (FIIs) sold equities worth Rs 2,575.06 crore. Conversely, domestic institutional investors took a more bullish stance, acquiring equities valued at Rs 5,749.65 crore on the same day. This dynamic of FII sales juxtaposed with domestic institutional buying paints a complex picture of investor sentiment in the market. Experts in the financial domain advised caution to investors, highlighting the importance of closely monitoring price movements as the market approached significant support and resistance levels which often dictate market behavior. Overall, the performance of the stock market on January 6, 2025, was regarded as a recovery from earlier fears related to HMPV, providing a dimming yet hopeful outlook for traders and investors heading into subsequent trading sessions.