05 August,2024 10:00 AM IST | Mumbai | mid-day online correspondent
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Indian markets experienced one of the worst falls on Monday with both the indices Nifty, and Sensex registering high losses during the opening trade. Indian markets followed the global stock markets bloodbath.
The 30-share BSE Sensex tanked 2,401.49 points to 78,580.46 in early trade. The NSE Nifty tumbled 489.65 points to 24,228.05, reported PTI.
In the broad market indices, all indices including Nifty Next 50, Nifty 100, Nifty Midcap, and Nifty Small cap declined around 2 per cent during the opening session.
From the Sensex pack, Tata Motors, Tata Steel, JSW Steel, Adani Ports, Maruti and Reliance Industries were the biggest laggards.
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Sun Pharma and Hindustan Unilever were trading in the positive territory.
In Asian markets, Seoul, Tokyo and Hong Kong were trading sharply lower while Shanghai quoted higher.
The US markets ended significantly lower on Friday.
"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 US job creation in July and the sharp rise in the US unemployment rate to 4.3 per cent. Geopolitical tensions in the Middle East also are a contributing factor," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, reported PTI.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,310 crore on Friday, according to exchange data, reported PTI.
"Anxiety remains high, especially after Friday's unexpectedly weak US July jobs report, suggesting that volatility will be the hallmark of the day," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, reported PTI.
Global oil benchmark Brent crude climbed 0.35 per cent to USD 77.08 a barrel.
Amid widespread selling pressure, the BSE benchmark plunged 885.60 points or 1.08 per cent to close at 80,981.95 on Friday. The broader Nifty of NSE dropped 293.20 points or 1.17 per cent to end at 24,717.70, reported PTI.
In the Asian stock markets, the Japanese markets are down 20 per cent from their recent all-time highs. The Nikkei 225 index declined more than 1600 points or 4.85 per cent to 34,247.56.
The markets of Japan faced pressure after the Bank of Japan announced a well-telegraphed rate hike, which led to an unwinding of Yen Carry trades, as the Yen appreciated.
In Taiwan markets the Taiwan Weighted Index also declined by more than 6 per cent, and Singapore's market also declined with the Straits Times index declining around 3 per cent.
The stock markets globally are facing selling pressure after the US economic data has shown weakness, with questions being raised on the Fed's " soft landing" of the US economy narrative.
(With inputs from PTI)
