The Indian stock market experienced a significant downturn on Monday, with the BSE Sensex plummeting 2,222.55 points, or 2.74%, to close at a lower level. The benchmark Sensex fell by more than 2,400 points, mirroring the sharp decline in global markets.
As a result of the steep fall in equities, the market capitalization of companies listed on the Bombay Stock Exchange (BSE) decreased by Rs 9,51,771.37 crore, reaching Rs 4,47,65,174.76 crore (USD 5.35 trillion) during the morning trading session.
The global market is reeling as bears enter with a combination of bad news, including the fear of a reverse Yen carry trade following an interest rate hike in Japan and fears of a recession in the USA after extremely poor jobs data, which spooked market sentiment. Analysts at JPMorgan were even more bearish, assigning a 50% probability to a U.S. recession.
Japan’s Nikkei shed a significant 11.6% to hit seven-month lows, a scale of losses not seen since the 2011 global financial crisis. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 3.8%. Chinese blue chips dipped only 0.5%, aided by a bounce in the Caixin services PMI to 52.1.
The Indian equity markets are experiencing indications of the first significant correction in global markets following a prolonged bull run. The combination of unfavorable news from various fronts has contributed to the current market downturn, causing concern among investors and leading to a substantial erosion of wealth in the short term.
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