Sensex and Nifty fell nearly 3% on Monday due to weak global equity markets and fears of a US economic slowdown.
The 30-share BSE Sensex dropped 2,222.55 points, or 2.74%, to a month-low of 78,759.40, marking its worst single-day decline since June 4, 2024. Intraday, it plummeted 2,686.09 points, or 3.31%, to 78,295.86.
The NSE Nifty fell 662.10 points, or 2.68%, to 24,055.60. During the day, it tumbled 824 points, or 3.33%, to 23,893.70, also marking its worst single-day drop since June 4, 2024, when markets fell over 5% due to election results.
Analysts attributed the market crash to a 12% drop in Japan’s Nikkei and geopolitical tensions in the Middle East. Major Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, also closed sharply lower.
Japan’s Nikkei plunged 12.4%, driven by concerns over a potential US recession. A report on Friday showed US hiring slowed significantly, shaking investor confidence and dragging the Nikkei 225 down from recent highs of over 42,000.
The Nikkei closed Monday down 4,451.28 points at 31,458.42, its worst two-day decline ever. The index’s steepest single-day fall was on October 19, 1987, during the “Black Monday” global market crash.
European markets were also trading with deep losses, and US markets ended significantly lower on Friday.
In the Sensex pack, Tata Motors fell over 7%, with Adani Ports, Tata Steel, SBI, Power Grid, JSW Steel, and Maruti also among the major losers. However, Hindustan Unilever and Nestle ended positively.
Vinod Nair, Head of Research at Geojit Financial Services, said, “Global markets were shaken by US recession fears following disappointing job statistics and the rapid rise of the yen. These effects impacted the domestic market and are expected to continue in the near term.”
Foreign Institutional Investors (FIIs) sold equities worth ₹3,310 crore on Friday, according to exchange data.
Santosh Meena, Head of Research at Swastika Investmart Ltd., added, “Global markets are reeling from a mix of bad news. The fear of a reverse Yen carry trade, following an interest rate hike in Japan, and poor US job data spooked market sentiment.”
Brent crude oil prices fell 1.93% to $75.33 a barrel. The BSE smallcap index dropped 4.21%, and the midcap index fell 3.60%.
On Friday, the BSE benchmark fell 1.08%, and the NSE Nifty dropped 1.17%. Over two sessions, Nifty and Sensex have corrected nearly 4%.
