There was a severe stock market crash on Monday and there was an outcry among investors. Bombay Stock Exchange’s 30-share Sensex was trading up to 2600 points, while National Stock Exchange’s Nifty was trading down by more than 700 points. The turmoil in America is being cited as the reason for this decline in the stock market. Let us understand in 5 points what happened in the US due to which the Indian stock market got shattered?
Investors get a hit of Rs 18 lakh crore!
First of all, let us talk about the latest situation of the share market, then let us tell you that the BSE Sensex had opened with a fall of about 1300 points and in no time it slipped by more than 2400 points to the day’s low of 78,295.86. Had slipped till. On the other hand, Nifty also fell by 720 points and fell below the level of 24,000 to the level of 23,893.70. Due to the stock market crash, investors’ money worth Rs 17 lakh crore was wiped out in one go. BSE MCap declined to Rs 440 lakh crore compared to Rs 457.16 lakh crore last Friday.
Foreign markets disintegrated in no time
There has been huge devastation not only in the Indian stock market but also in the foreign markets. A big decline has been seen in the stock markets from America to Japan. Japan Stock Market fell by 10 percent. This is the biggest fall in Japan in almost 3 decades. On the other hand, Dow Jones slipped by 1.51 percent, while Nasdaq Composite fell by 2.43 percent. Not only this, S&P 500 also fell by 1.84 points.
What happened in America?
Now let’s talk about what has happened in America due to which the Indian stock market seems to be collapsing. So, let us tell you that after the fear of recession in America, there was a big loss in the market on Friday, on the other hand, apart from the delay in cutting the policy rate in America, strong selling in AI and chip stocks also led to the fall. Was one of the big reasons. Especially the effect of this stir in America is visible in the markets all over the world including India.
With the sound of recession in America, these 5 big reasons for the decline in the market…
primary reason- Unemployment rate in America reached 3 years high. The unemployment rate in America has reached the level of 4.3 percent, which is the highest unemployment figure in America after October 2021.
Second reason- There has been a big decline in manufacturing PMI data in the US. US Manufacturing PMI fell to an eight-month low in July due to a decline in new orders. According to the Institute for Supply Management (ISM), it came down to 46.8 in July, which is the lowest reading since November, while it was 48.5 in June.
Third reason- There is an environment of layoffs going on in American IT companies. There has been turmoil in many big companies and the global IT sector remains under pressure due to the announcement of layoffs in the IT sector.
Fourth reason- The Japanese currency Yen has strengthened against the US Dollar. In such a situation, the danger of ending the Yen Carry Trade in Japan has not only increased, but it has also deepened the fear of increased selling.
Fifth reason- Apart from all these reasons, global tension also seems to be having an impact on the stock markets around the world. This includes the possibility of increasing tension between Israel, Hamas and Iran.
(Note- Before making any investment in the stock market, definitely take advice from your market experts.)