S&P Tumbles 6% as Global Sell-off Jolts Indian Markets
The Indian stock market witnessed a bloodbath on Wednesday, with the S&P 500 plunging 6% to mark its worst day since March 2020. The global sell-off, triggered by the US markets, sent shockwaves across the world, pulling Indian indices down sharply. The Sensex, India’s benchmark index, plunged over 2,200 points, while the Nifty50 fell over 650 points.
The US markets, which have been under pressure for several days, saw a massive sell-off on Wednesday, with the Nasdaq entering bear territory. The benchmark S&P 500 index saw its worst day since March 2020, with the tech-heavy Nasdaq falling over 4%. The Dow Jones Industrial Average also plummeted over 2%.
The global sell-off was triggered by concerns over the rising interest rates and inflation in the US. The Federal Reserve’s decision to raise interest rates by 0.5% in its previous meeting, coupled with the ongoing trade tensions between the US and China, has led to a sense of uncertainty among investors.
The Indian market, which had been relatively resilient in the face of global volatility, was not spared from the sell-off. The IT and pharma sectors, which are major contributors to India’s GDP, saw significant declines. The Nifty IT index fell over 3%, while the Nifty Pharma index plummeted over 4%.
The sell-off was widespread, with all major sectors seeing significant declines. The Nifty Bank index fell over 2%, while the Nifty Auto index plunged over 3%. The Nifty Metal index, which had been a bright spot in recent times, fell over 2.5%.
The market’s sharp decline was attributed to a combination of factors, including the global sell-off, recession fears, and concerns over the Indian economy’s growth prospects. The Reserve Bank of India (RBI) has been grappling with the challenge of containing inflation, which has been rising steadily in recent months.
The RBI’s decision to raise interest rates by 0.25% in its previous meeting, coupled with the ongoing trade tensions and global slowdown, has led to a sense of uncertainty among investors. The Indian economy, which had been growing steadily in recent times, is facing challenges due to the global slowdown and domestic issues such as the NBFC crisis.
The market’s sharp decline has raised concerns over the impact on the economy and the potential for a recession. The IT and pharma sectors, which are major contributors to India’s GDP, are already feeling the heat. The decline in these sectors is expected to have a ripple effect across the economy, leading to job losses and a slowdown in economic growth.
Investors are bracing for continued volatility across markets worldwide, as the global sell-off shows no signs of abating. The US markets, which have been under pressure for several days, are expected to remain volatile in the coming days.
The Indian market, which has been relatively resilient in the face of global volatility, is expected to remain volatile in the coming days. The market’s sharp decline has raised concerns over the impact on the economy and the potential for a recession.
In conclusion, the S&P’s 6% plunge and the global sell-off have sent shockwaves across the world, pulling Indian indices down sharply. The market’s sharp decline has raised concerns over the impact on the economy and the potential for a recession. Investors are bracing for continued volatility across markets worldwide, as the global sell-off shows no signs of abating.
Source: https://www.thecore.in/podcasts/us-stocks-whacked-for-the-third-day-833088
