Sensex Crashes: India Shares Plummet Amid US Growth Fears
The Indian stock market witnessed a significant downturn on Monday, with the BSE Sensex plummeting over 1,000 points to its lowest level since May 30. This decline was largely attributed to growing concerns over a potential slowdown in US economic growth, which sent shockwaves across international markets.
The market opened on a negative note, with the Sensex crashing 1,046 points to 59,465.91, while the NSE Nifty 50 index dropped 312.35 points to 17,695.10. All sectoral indices on the NSE ended in the red, with metal and IT stocks being the biggest losers. The decline was broad-based, with investors rushing to exit the market amidst growing uncertainty.
The Indian market is closely linked to global trends, and the US growth fears have sparked a sell-off in Indian shares. The decline in US stocks, combined with rising bond yields, has led to a risk-off sentiment among investors. Additionally, the ongoing geopolitical tensions and concerns over inflation have further exacerbated the market downturn.
Market analysts believe that the market is reacting to global cues, and the US growth concerns have led to a risk-off sentiment. They expect the market to remain volatile in the short term, as investors await further cues on interest rate hikes and earnings season.
The rupee also depreciated 44 paise to 82.47 against the US dollar, adding to the market’s woes. Global markets also suffered significant losses, with the US Dow Jones Industrial Average falling over 800 points on Friday.
Investors will be closely watching the upcoming US Federal Reserve meeting for cues on interest rate hikes. Any indication of a more aggressive rate hike could further exacerbate the market downturn. Meanwhile, domestic investors will be keeping an eye on the upcoming earnings season, hoping for some positive news to stem the decline.
Overall, the Indian stock market has suffered a significant setback amid growing concerns over US economic growth. As global markets continue to grapple with uncertainty, investors in India will need to remain cautious and watchful of upcoming events that could impact the market’s trajectory.