Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark indices, crashed in opening trade on Monday tracking global cues. While BSE Sensex moved below 80,000, Nifty50 was near 24,300. At 9:17 AM, BSE Sensex was trading at 79,579.21, down 1402 points or 1.73%. Nifty50 was at 24,303.80, down 414 points or 1.67%.
At this hour, Sun Pharma and Hindustan Unilever are the only gainers in the 30-share BSE Sensex index.The top losers are Tata Motors, Tata Steel, Adani Ports SEZ, Maruti Suzuki, SBI, JSW Steel and M&M.
The global financial markets experienced significant turbulence on Monday, with Asian share markets plummeting and investors seeking refuge in bonds. The shift in sentiment was driven by growing concerns that the United States economy may be heading towards a recession, prompting market participants to rapidly adjust their expectations for interest rates.
In a recent note, Goldman Sachs analysts stated, “We have increased our 12-month recession odds by 10pp to 25%,” although they believed that the Federal Reserve’s extensive capacity to loosen monetary policy would help mitigate the risk. Goldman Sachs has revised its forecast and now anticipates quarter-point rate cuts in September, November, and December.
Nasdaq futures bore the brunt of the sell-off, plunging 2.27%, while S&P 500 futures declined by 1.41%. European markets also felt the impact, with EUROSTOXX 50 futures fell 0.6% and FTSE futures 0.2%.
In Asia, the Japanese Nikkei index suffered a staggering 5.5% drop, hitting seven-month lows and marking its most severe three-session loss since the financial crisis of 2011. The broader MSCI’s broadest index of Asia-Pacific shares outside Japan lost 2.0%. However, Chinese blue chips managed to buck the trend, rising 0.4% on the back of an improvement in the Caixin services PMI, which reached 52.1.
The bond market also witnessed significant movements, with Japanese 10-year bond yields plummeting 17 basis points to 0.785%, the lowest level since April.
Market analysts believe that the focus this week will be on global markets, as there are the first major signs of weakness after a prolonged period of stability.
“The short-term trend of Nifty is down, but the near-term uptrend status of the market is intact. There is a possibility of some more weakness in the coming sessions down to 24600-24500 levels before showing any upside bounce from the lows. Immediate resistance is at 24900 levels,” said Nagaraj Shetti of HDFC Securities.
Oil prices are hovering at eight-month lows, with Brent crude futures and U.S. West Texas Intermediate crude futures both slightly down. The fear of a recession in the United States is offsetting concerns about potential supply disruptions due to escalating tensions in the Middle East.
Foreign portfolio investors (FPIs) turned net sellers, offloading shares worth Rs 3,310 crore on Friday, while domestic institutional investors (DIIs) bought shares worth Rs 2,965 crore.
Several companies, including Airtel, ONGC, and Marico, are set to announce their first-quarter results on Monday, which may provide further insights into the market’s direction.
At this hour, Sun Pharma and Hindustan Unilever are the only gainers in the 30-share BSE Sensex index.The top losers are Tata Motors, Tata Steel, Adani Ports SEZ, Maruti Suzuki, SBI, JSW Steel and M&M.
The global financial markets experienced significant turbulence on Monday, with Asian share markets plummeting and investors seeking refuge in bonds. The shift in sentiment was driven by growing concerns that the United States economy may be heading towards a recession, prompting market participants to rapidly adjust their expectations for interest rates.
In a recent note, Goldman Sachs analysts stated, “We have increased our 12-month recession odds by 10pp to 25%,” although they believed that the Federal Reserve’s extensive capacity to loosen monetary policy would help mitigate the risk. Goldman Sachs has revised its forecast and now anticipates quarter-point rate cuts in September, November, and December.
Nasdaq futures bore the brunt of the sell-off, plunging 2.27%, while S&P 500 futures declined by 1.41%. European markets also felt the impact, with EUROSTOXX 50 futures fell 0.6% and FTSE futures 0.2%.
In Asia, the Japanese Nikkei index suffered a staggering 5.5% drop, hitting seven-month lows and marking its most severe three-session loss since the financial crisis of 2011. The broader MSCI’s broadest index of Asia-Pacific shares outside Japan lost 2.0%. However, Chinese blue chips managed to buck the trend, rising 0.4% on the back of an improvement in the Caixin services PMI, which reached 52.1.
The bond market also witnessed significant movements, with Japanese 10-year bond yields plummeting 17 basis points to 0.785%, the lowest level since April.
Market analysts believe that the focus this week will be on global markets, as there are the first major signs of weakness after a prolonged period of stability.
“The short-term trend of Nifty is down, but the near-term uptrend status of the market is intact. There is a possibility of some more weakness in the coming sessions down to 24600-24500 levels before showing any upside bounce from the lows. Immediate resistance is at 24900 levels,” said Nagaraj Shetti of HDFC Securities.
Oil prices are hovering at eight-month lows, with Brent crude futures and U.S. West Texas Intermediate crude futures both slightly down. The fear of a recession in the United States is offsetting concerns about potential supply disruptions due to escalating tensions in the Middle East.
Foreign portfolio investors (FPIs) turned net sellers, offloading shares worth Rs 3,310 crore on Friday, while domestic institutional investors (DIIs) bought shares worth Rs 2,965 crore.
Several companies, including Airtel, ONGC, and Marico, are set to announce their first-quarter results on Monday, which may provide further insights into the market’s direction.
Source Agencies
