S&P Tumbles 6% as Global Sell-off Jolts Indian Markets
The global financial markets witnessed a chaotic day on Wednesday, with the S&P 500 index plummeting 6% to mark its worst day since March 2020. The sharp decline in US markets triggered a global sell-off, sending Indian indices tumbling as well. The Sensex ended the day over 2,200 points lower, while the Nifty50 fell by over 700 points. The rout in global markets has raised concerns about a potential recession, leading to a sell-off in IT and pharma stocks.
The S&P 500’s 6% decline is its worst single-day performance since March 2020, when the COVID-19 pandemic was wreaking havoc on global markets. The Nasdaq, which is considered a bellwether for the tech sector, fell into bear territory, meaning it has declined by at least 20% from its recent peak. The Dow Jones Industrial Average also plunged by over 1,800 points, or 5.5%.
The sell-off in US markets was triggered by a combination of factors, including concerns about the impact of inflation on the economy, the ongoing trade tensions between the US and China, and the uncertainty surrounding the outcome of the US presidential election. The yield on the 10-year Treasury bond, which has been rising in recent weeks, also contributed to the market volatility.
The global sell-off was not limited to the US markets. European stocks also declined sharply, with the Stoxx Europe 600 index falling by over 2.5%. Asian markets also saw significant declines, with the Nikkei 225 index in Japan falling by over 3.5%.
The Indian markets followed the global trend, with the Sensex falling by over 2,200 points to close at 38,311. The Nifty50 also declined by over 700 points to close at 11,432. The broader market indices also saw significant declines, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling by over 3% and 4%, respectively.
The IT and pharma sectors were among the worst-hit in the Indian markets, with stocks such as TCS, Infosys, and HCL Technologies declining by over 5%. The pharma sector also saw significant declines, with stocks such as Sun Pharma and Dr. Reddy’s Laboratories falling by over 6%.
The sell-off in global markets has raised concerns about a potential recession, which could have significant implications for the Indian economy. India’s GDP growth rate has been slowing down in recent quarters, and a global recession could exacerbate the situation.
However, some experts believe that the current sell-off is a correction that is necessary to bring the markets back in line with the fundamentals. “The current sell-off is a correction that is necessary to bring the markets back in line with the fundamentals,” said Rakesh Jain, a Mumbai-based analyst. “The markets had been rising too quickly, and this correction is a necessary step to bring them back to a more sustainable level.”
In conclusion, the S&P 500’s 6% decline has sent shockwaves across global markets, leading to a sell-off in Indian indices as well. The IT and pharma sectors were among the worst-hit, and the sell-off has raised concerns about a potential recession. However, some experts believe that the current sell-off is a necessary correction to bring the markets back in line with the fundamentals.
News Source:
https://www.thecore.in/podcasts/us-stocks-whacked-for-the-third-day-833088
