The benchmark indices for India have suffered since hitting all-time highs on Thursday. The crash in international stock markets, which has left other Asian rivals in a sea of red, is what is causing the carnage in Indian shares.
Data released on Friday revealed that the US economy is rapidly sliding into a recession, with particularly dismal employment figures. This raised concerns about the Federal Reserve’s apparent tardiness in providing assistance to the nascent US economy. The largest portion of Friday’s selloff was seen in US stocks. But Monday’s trade led to a more severe worldwide asset sell-off.
Indian stocks were adversely impacted by a negative global sentiment. The blue-chip Sensex index dropped more than 2,500 points, reaching a low trough not seen since late June at roughly 78,500. In addition, the broader Nifty index fell more than 3%, closing at slightly over 24,000 points.
This occurs right after outside investors made a big push into Indian stocks to stop a selling frenzy. The last time domestic stocks experienced a drop of this magnitude was on June 4, election day, when about 400 billion dollars were lost.
On Thursday of last week, both benchmarks broke significant new milestones and reached new lifetime highs. The Sensex index reached an all-time high of 82,129, crossing the 82,000 barrier for the first time ever. However, the index plummeted to 78,580 points on Monday. That is a decrease of about 4,000 points from Thursday’s peak.
On Thursday, Nifty also crossed over the 25,000 mark for the first time ever. but has already dropped more than 4% from its 25,078 record high.
