Sensex crashes 3%, Nifty 50 drops 2%
Indian stock market benchmarks, the Sensex and the Nifty 50 experienced a significant decline in early trading on Monday, reflecting the global trend after the US recession fears mounted and rising tensions in the Middle East kept investors on edge.
The Sensex and Nifty 50 fell by up to 3 percent, tracking the global trend of market turbulence driven by mounting fears of a US recession and escalating tensions in the Middle East.
Asian markets also posted losses, influencing the negative sentiment on the Indian bourses.
At 9:42 a.m., the Sensex was down by 1,509 points, or 1.86 percent, at 79,460. Meanwhile, the Nifty 50 fell by 465 points, or 1.88 percent, to 24,252.
The market trend remains negative. On the National Stock Exchange (NSE), 110 shares are trading in the green and 2,126 shares in the red.
Selling pressure is also being seen in small and medium stocks. Nifty midcap 100 index is down 1,677 points or 2.90 percent to 56,236 and the Nifty smallcap 100 index is down 598 points or 3.18 percent to 18,202.
Almost all the indices are trading in the red. Auto, IT, PSU Bank, Fin Service, Realty, Energy, and Infra are major laggards.
Hardik Matalia, Research Analyst at Choice Broking said, “The global market witnessed sharp selling pressure as there is a fear that the United States is heading to a recession.”
“After a gap down opening, Nifty can find support at 24,300 followed by 24,250 and 24,200. On the higher side, 24,500 can be an immediate resistance, followed by 25,600 and 25,650,” he added.
In the Sensex pack, Tata Motors, Maruti Suzuki, JSW Steel, Tata Steel, Power Grid, and Reliance are the top losers. Sun Pharma, HUL, Asian Paints, and Nestle are the top gainers.
Another expert said, “The rally in the global stock markets has been driven mainly by consensus expectations of a soft landing for the US economy. This expectation is now under threat with the fall in the US job creation in July and the sharp rise in the US unemployment rate to 4.3 percent. Geopolitical tensions in the Middle East also are a contributing factor.”
Foreign institutional investors (FIIs) sold equities worth Rs.3,310 crore on August 2, while domestic institutional investors bought equities worth Rs.2,965 crore on the same day.
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Indian stock market is a joke & artificial. It has no strength on its own, totally manipulated & fictituous trading. Wish it suffer more losses so that investors (gamblers) stay away, genuine true investors find their way. The current investors are only interested in earning profits (just like greedy money lenders), which does nothing to the industry.