Indian Stock Markets Plunge: Nifty and Sensex Face Major Losses
On Monday, Indian stock markets experienced one of the worst falls with both the Nifty 50 and BSE Sensex registering high losses during the opening trade.
Market Performance
The Nifty 50 index declined by 414.85 points or 1.68% to open at 24,302.85 points, while the BSE Sensex slumped by 2393.76 points or 2.96% to open at 78,588.19 points. All broad market indices, including Nifty Next 50, Nifty 100, Nifty Midcap, and Nifty Small cap, declined around 2% during the opening session.
Expert Opinion
Ajay Bagga, a banking and market expert, commented, “Expect more selling in the markets, but as we saw on June 4th and in July post the Union Budget, the strong domestic liquidity could provide a safety net for the Indian markets, in a worsening global sentiment environment.” He added that the global markets are reacting to the Sahm Rule being triggered, indicating a potential US recession as US unemployment reached 4.3%.
Global Market Impact
In Asian stock markets, Japan’s Nikkei 225 index declined by more than 1600 points or 4.85% to 34,247.56. The Bank of Japan’s rate hike led to an unwinding of Yen Carry trades, causing the Yen to appreciate. Taiwan’s Weighted Index also declined by more than 6%, and Singapore’s Straits Times index fell around 3%. The global market downturn follows weak US economic data and concerns over the Federal Reserve’s economic strategies.
Doubts Revealed
Nifty 50 -: Nifty 50 is a stock market index in India. It shows the performance of 50 large companies listed on the National Stock Exchange (NSE).
BSE Sensex -: BSE Sensex is another stock market index in India. It tracks the performance of 30 well-established companies listed on the Bombay Stock Exchange (BSE).
Ajay Bagga -: Ajay Bagga is a market expert who understands and explains how stock markets work. He gives his opinions on why markets go up or down.
US recession -: A US recession is when the economy of the United States slows down a lot. This can affect other countries’ economies, including India’s.
Sahm Rule -: The Sahm Rule is a way to predict if the US economy is going into a recession. It looks at changes in the unemployment rate.
Nikkei 225 -: Nikkei 225 is a stock market index in Japan. It shows the performance of 225 large companies listed on the Tokyo Stock Exchange.
Taiwan’s Weighted Index -: Taiwan’s Weighted Index is a stock market index in Taiwan. It tracks the performance of major companies listed on the Taiwan Stock Exchange.
Federal Reserve -: The Federal Reserve is the central bank of the United States. It makes important decisions about the US economy, like setting interest rates.