Sensex Drops 2,600 Points Amid US Economic Woes and Global Tensions
Global Selloff Hits Indian Markets; Rupee Falls to Record Low Amid Economic Uncertainty and Middle East Tensions
The Impressive TimesNew Delhi, August 5, 2024: Indian stock markets experienced a dramatic decline on Friday, with the Sensex falling by 2,600 points to 78,385.49 and the Nifty dropping 463.50 points to 24,254.20. This sharp drop comes in the wake of weaker-than-expected US jobs data, which has triggered global recession fears and led to a widespread selloff in equities.
The Nifty 50 and S&P BSE Sensex ended their longest weekly winning streak in over 14 years, primarily driven by losses in information technology stocks. The selloff was sparked by July’s US jobs growth data, which showed a slowdown greater than anticipated, raising concerns about a potential economic slowdown. Additionally, the upcoming US elections in November are adding to investor anxiety.
The Indian rupee also fell to an all-time low of 83.80 against the US dollar, reflecting the global risk-off sentiment. Investors are closely monitoring the situation in the Middle East, where tensions have escalated following the assassination of Hamas leader Ismail Haniyeh in Tehran, allegedly by Israel.
From the Sensex pack, major laggards included Tata Motors, Tata Steel, JSW Steel, Adani Ports, Maruti, and Reliance Industries. However, Sun Pharma and Hindustan Unilever were among the few stocks trading positively.
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