Indian Stock Markets Sink: Sensex And Nifty Drop Sharply Amid Global And US Economic Concerns

Indian stock markets saw a significant decline on Monday, mirroring the global stock market sell-off. Both major indices, the Nifty and the Sensex, experienced steep losses during early trading.

The 30-share BSE Sensex dropped by 2,401.49 points to 78,580.46. Similarly, the NSE Nifty fell by 489.65 points to 24,228.05, according to PTI.

In the broader market, indices including Nifty Next 50, Nifty 100, Nifty Midcap, and Nifty Smallcap all declined by around two per cent in early trading.

Among the major Sensex stocks, Tata Motors, Tata Steel, JSW Steel, Adani Ports, Maruti Suzuki, and Reliance Industries saw the largest declines. Conversely, Sun Pharma and Hindustan Unilever were among the few stocks trading positively.

Asian markets also experienced losses, with Seoul, Tokyo, and Hong Kong all trading significantly lower, while Shanghai reported gains.

US markets ended sharply lower on Friday, driven by concerns about the US economy. A drop in US job creation in July and a rise in the unemployment rate to 4.3 per cent have raised doubts about the anticipated soft landing for the US economy. Additionally, geopolitical tensions in the Middle East have contributed to market instability.

Foreign Institutional Investors (FIIs) sold equities worth Rs 3,310 crore on Friday, according to exchange data.

"With the unexpectedly weak US jobs report from July, anxiety remains high, suggesting that volatility will be a key feature of today's market," said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd in Midday.

In commodities, the global oil benchmark Brent crude increased by 0.35 per cent to USD 77.08 per barrel.

On Friday, the BSE Sensex fell by 885.60 points or 1.08 per cent to close at 80,981.95, while the NSE Nifty dropped by 293.20 points or 1.17 per cent to end at 24,717.70.

In Asian markets, Japan's Nikkei 225 index declined by over 1,600 points, or 4.85 per cent, to 34,247.56, as the Bank of Japan's rate hike led to a strong Yen and unwinding of Yen Carry trades. Taiwan's Weighted Index and Singapore's Straits Times index also fell by more than 6 per cent and 3 per cent, respectively.

Global stock markets are under pressure following weak US economic data, which has raised questions about the Federal Reserve's ability to achieve a smooth economic transition.