Indian stock markets are experiencing a severe Crash today with the Sensex and Nifty 50 plummeting 3% each today. As of press time though, Sensex has slightly corrected to the upside and trading at 78,728.85 and the Nifty 50 reading 684.50 points down or 2.77% to 24,033.20. The Nifty Bank index is also down 1,255.65 points or 2.45%, standing at 50,094.50. This sharp decline is linked to global market trends, influenced by US recession fears and escalating tensions in the Middle East. The selloff has wiped out over Rs 10 lakh crore of investor wealth in a single day.
Global markets have also crashed, with Japan's Nikkei 225 down 7.93% forcing a trading halt. Korea's KOSPI has fallen 5.4%, while US futures indicate further losses with the Dow, S&P 500 and NASDAQ futures down 0.5%, 1.2% and 2.1% respectively. Crypto hasn't been spared, with Bitcoin and Ethereum dropping 10% and 21% respectively.
Looking at the top Indian stock losses, Tata Motors leads the decline plummeting 6.47% to Rs 1,025.75, followed closely by Adani Ports which is down 5.80% at Rs 1,495.85. ONGC shares are falling by 4.98% trading at Rs 313.65, while Hindalco is experiencing a 4.86% drop to Rs 616.55. Tata Steel is also under pressure losing 4.76% and trading at Rs 150.69.
State Bank of India shares are down 4.44% at Rs 810.20 and Power Grid Corporation is falling 4.08% to Rs 343.65. Maruti Suzuki is declining by 4.01% with its stock price at Rs 12,215.95. Infosys is seeing a 3.63% decrease trading at Rs 1,755.15 and JSW Steel rounds out the top 10 losers shedding 3.57% to reach Rs 867.45. These steep declines reflect the overall bearish sentiment currently dominating the market.
The market selloff is attributed to several factors. US recession fears have intensified after July's unemployment rate jumped to a near three-year high of 4.3%. This has led to speculation about potential Federal Reserve rate cuts later this year. Additionally, rising tensions between Iran and Israel following the killing of Hamas political chief Ismail Haniyeh have further dampened investor sentiment.
Domestically mixed Q1 results from India Inc. have failed to boost market confidence with concerns about sustaining high valuations amid potential earnings moderation. Technically the Nifty 50 breaking below its previous higher low suggests further downside potential in the coming days.
As the market remains open, investors are closely watching for any signs of stabilization or further deterioration in global and domestic factors affecting stock prices.