Lucknow Press
Mumbai. Amid heavy selling in the global market, the Indian stock market witnessed a furor on Monday morning. On the first trading day of the week, the Sensex slipped by more than 1600 points. The Sensex opened with a decline of more than 2,400 points in Monday’s session amid investors distancing themselves from risk assets due to fears of a possible recession in the US.
On the other hand, the Nifty also weakened after the sell-off and fell below 24200. During the early trade, Titan shares fell by up to 9 percent.
Investors lost Rs 10 lakh crore in early trade
Meanwhile, the market capitalisation of all listed companies on the BSE fell by Rs 10.24 lakh crore to Rs 446.92 lakh crore. The rupee hit an all-time low of 83.7525 on Monday.
What is the reason for the fall in the market?
Dr. VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services, said that the main reason for the sharp decline in the global stock markets is driven by the fear of slowdown in the American economy. There has been a decline in job creation in the US in July. The unemployment rate has increased sharply by 4.3%. Geopolitical tensions in the Middle East are also a major reason for the decline in the market.
The decline of above 4% in Nikkei this morning is an indicator of crisis in the Japanese market. Investors do not need to rush to buy in this correction. Wait for the market to stabilize.
India VIX hits two-month high
Among Sensex companies, stocks like Tata Motors, Adani Ports, M&M, SBI, JSW Steel and Titan saw heavy selling. Out of 30 Sensex stocks, 28 were seen trading in the red. During early trade on Monday, India VIX reached a two-month high of 17.36 and the Sensex fell below the budget day low of 79,224 points. Titan shares fell after missing the profit target in the first quarter.
Nifty shares in red mark
46 Nifty stocks were in the red in early trade. Tata Motors, Hindalco, ONGC, Shriram Finance and JSW Steel were seen trading as top losers on the Nifty. They fell up to 4.37% in early deals.
88 stocks hit 52-week high on BSE
88 stocks hit their fresh 52-week high in early deals on the BSE on Monday. On the other hand, 42 stocks hit their fresh 52-week low.
