Benchmark indices, Sensex and Nifty, tumbled sharply for the second consecutive session today, mirroring global market fears of a potential recession in the US economy.
Investor wealth declined by Rs 18 lakh crore, with the market valuation dropping to Rs Rs 443.29 lakh crore from the previous session’s Rs 457.16 lakh crore.
The S&P BSE Sensex was down 2,345 points lower at 78,636.37 at around 12:09 pm, while the NSE Nifty50 plunged 698.70 points to trade at 24,019.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted US job data, which led to a global sell-off, was the key factor behind today’s steep fall in Sensex and Nifty.
He explained that expectations of a soft landing for the US economy is now in jeopardy due to a decline in job creation in July and a sharp rise in the US unemployment rate to 4.3%. Geopolitical tensions in the Middle East are also exacerbating market fears, Vijayakumar noted.
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