Stock Market Crash: When the stock market opened on the first Monday of 2025, both Sensex and Nifty were showing positive trends. However, as soon as three cases of the Chinese HMPV virus were reported in India, panic set in, causing a sharp reversal in the market. What began as a rise quickly turned into a dramatic fall, with the market dropping by 1400 points within hours, wiping out Rs 8 lakh crore in investor wealth.

On January 6, investors were in for a shock when the Sensex of the Bombay Stock Exchange plunged by 1400 points, and the Nifty slipped by 365 points. Almost all stocks in the indices turned negative, with major stocks like Tata Steel, HDFC Bank, Adani Ports, and Reliance suffering significant losses. The Sensex dropped to a new low of 77,782 points, while the Nifty fell below 23,600.

The cause of the crash: Although the Sensex started the day with gains, the news of HMPV virus cases in India triggered widespread fear among investors. The confirmed cases in Bangalore and Gujarat, particularly involving young children, fueled panic in the market. Investors became cautious and sought to minimize risk in response to the virus spread.

Additional factors contributing to the crash included continued selling by foreign investors, rising crude oil prices, and the uncertainty surrounding third-quarter results. Geopolitical tensions and the potential impact of Donald Trump's second term in the U.S. also added to the market's instability.