Nifty, Sensex plunges at pre-open, revive a little on opening but still over 1.7 pc down

Mumbai (Maharashtra) [India], August 5 (ANI): Indian markets experienced one of the worst falls on Monday with both the indices Nifty, and Sensex registering high losses during the opening trade. Indian stock markets followed the global bloodbath.

The Nifty 50 index declined 414.85 points or 1.68 per cent to open at 24,302.85 points while the BSE Sensex slumped 2393.76 points or 2.96 per cent to open at 78,588.19 points.

In the broad market indices, all indices including Nifty Next 50, Nifty 100, Nifty Midcap, and Nifty Small cap declined around 2 per cent during the opening session.

“Expect more selling in the markets, but as we saw on June 4th and in July post the Union Budget, the strong domestic liquidity could provide a safety net for the Indian markets, in a worsening global sentiment environment” said Ajay Bagga, Banking and Market Expert.

He further added, “Globally markets are reacting after on Friday, the Sahm Rule got triggered, as US unemployment reached 4.3 per cent. This is predicting a US recession”.

The “Sahm Rule” is a recession indicator created and named after Claudia Sahm, a macroeconomist who worked at the Federal Reserve and the White House Council of Economic Advisers

In the Asian stock markets, the Japanese markets are down 20 per cent from their recent all-time highs. The Nikkei 225 index declined more than 1600 points or 4.85 per cent to 34,247.56.

The markets of Japan faced pressure after the Bank of Japan announced a well-telegraphed rate hike, which led to an unwinding of Yen Carry trades, as the Yen appreciated.

In Taiwan markets the Taiwan Weighted Index also declined by more than 6 per cent, and Singapore’s market also declined with the Straits Times index declining around 3 per cent.

The stock markets globally are facing selling pressure after the US economic data has shown weakness, with questions being raised on the Fed’s ” soft landing” of the US economy narrative.