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Stock Market Crash LIVE: Sensex Drops 2,686 Points Intraday, Nifty Falls Below 24,000 Today

Shilpi

The Nifty is hovering around 24,050, the Sensex has dropped 2,300 points, and the rupee has hit a record low.

candlestick-chart-and-data-of-financial-market Stock Market Crash LIVE: Sensex Drops 2,686 Points Intraday, Nifty Falls Below 24,000 Today
Why Sensex, Nifty fell on Monday: Here are top reasons why Indian stock markets, Sensex, Nifty, fell today, August 5

In a dramatic turn of events, Indian stock markets are experiencing a severe downturn today, with major indices including the Nifty 50 and Sensex falling sharply by 3% each. The Bank Nifty has been particularly hard-hit, plunging by 1500 points.

Why Sensex, Nifty fell today: : Indian stock markets tumbled in the early hours of Monday as global counterparts fell due to weak US jobs data and escalating concerns over a potential Iran-Israel conflict in the Middle East.

The NSE Nifty50, meanwhile, dropped below the 24,000 mark, reaching a low of 23,894. The index declined by 824 points, or 3.3 percent.
In the broader market, the Nifty MidCap 100 and SmallCap 100 indices fell by 4.2 percent and 4.9 percent, respectively, during intraday trading.

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V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “The anticipated soft landing for the US economy is at risk due to the decline in US job creation in July and the sharp rise in the unemployment rate to 4.3 percent. Geopolitical tensions in the Middle East are also contributing to the uncertainty. Additionally, the unwinding of the Yen carry trade is impacting the Japanese market, as evidenced by the Nikkei’s more than 7 percent drop this morning, signaling a crisis in Japan.”

“The buy on dips strategy, which has worked well in this bull run,  is likely to be threatened now. Investors need not rush to buy in this correction. Wait for the market to stabilise,” he added.

On August 2, last Friday, the Sensex dropped 885.6 points, or 1.08 percent, closing at 80,982. Meanwhile, the Nifty50 fell below the 25,000 mark to end at 24,717, down 293 points or 1.17 percent.

Here are top reasons why Indian stock markets, Sensex, Nifty, fell on Monday, August 5:

  1. Weak Economic Data: Disappointing economic indicators, such as poor job creation figures or declining economic growth, can lead to a loss of investor confidence and contribute to a market downturn.
  2. Geopolitical Tensions (Iran-Israel War): Escalating geopolitical conflicts, such as tensions in the Middle East, can create uncertainty in global markets, leading to declines in stock indices and affecting currency values.
  3. Interest Rate Changes: Central bank policies, such as changes in interest rates or monetary policy, can have significant impacts on stock markets and currencies. Rate hikes can strengthen a currency but may also slow economic growth.
  4. Currency Depreciation: The rupee’s record low can be a result of factors like capital outflows, trade imbalances, or global economic conditions, which can weaken the currency and impact investor sentiment.
  5. Global Market Trends: Global market movements and economic conditions can influence domestic markets. For instance, a downturn in major global indices or adverse global economic news can have a cascading effect on local markets.
  6. Market Sentiment: Investor sentiment and market speculation can lead to sharp declines in stock indices if there is widespread fear or panic selling.
  7. Economic Policy Uncertainty: Uncertainty regarding domestic economic policies, including fiscal measures or regulatory changes, can affect market stability and investor confidence.

These factors often interplay to influence market behavior and currency fluctuations.

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