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Synopsis: The Indian stock market suffered a severe crash, with the Sensex and Nifty plummeting due to weak global cues and poor economic data from the U.S. This resulted in a loss of Rs 5.42 lakh crore in investor wealth, highlighting the global market's vulnerability to economic shifts. Major indices across Asia also faced significant declines, emphasizing the widespread impact of the downturn.
Market Performance:
Sensex: Fell by over 800 points in early trading, closing down by 850 points at 81,020.
Nifty: Dropped by 268.95 points, ending at 24,741.
The downturn was triggered by a larger-than-expected rise in U.S. jobless claims, which spooked global markets. Additionally, the ISM manufacturing index in the U.S. fell to 46.8% in July, marking an eight-month low and signaling continued weakness in U.S. manufacturing. The NASDAQ, S&P 500, and Dow Jones also experienced significant declines.
Impact on Indian Markets:
The sell-off in U.S. markets overnight reverberated across Asian markets, with Japan's Nikkei and Hong Kong's Hang Seng also plunging. In India, top losers included Tata Motors, Maruti, and Tata Steel, with several stocks hitting their 52-week lows. Out of 3,208 stocks traded, a majority were in the red, with 60 stocks hitting their lower circuits.
Global Influence:
The crash underscores the interconnectedness of global markets, where economic indicators from one region can have ripple effects worldwide. As markets brace for continued volatility, investor sentiment remains cautious, with many seeking safer assets amid uncertainty.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Market investments are subject to risks, and readers are advised to consult a financial advisor before making any investment decisions.
