Stock market today: The Indian stock market, including Sensex and Nifty 50, tumbled significantly, reflecting global economic concerns. Early trades on Monday saw losses up to 3% as fears of a U.S. recession and Middle Eastern tensions influenced investor sentiment.
Sensex and Nifty 50 opened lower and dropped sharply, with the Sensex plunging over 2,393 points and Nifty near 24,050 by mid-morning. The entire market felt the impact, with midcap and smallcap indices also down by 4%.
Market value dropped dramatically within the first hour, wiping nearly ₹15 lakh crore off the BSE’s market cap, reflecting widespread panic and sell-offs across the board. Among the chaos, only a few stocks like Sun Pharma and Hindustan Unilever saw gains, while major players like Tata Motors and RIL faced severe losses.
Growing recession fears in the U.S., after unemployment rates rose for the fourth consecutive month, have severely dented global risk appetite, impacting markets worldwide.
Tensions in the Middle East are on the rise, adding to the global market’s nervousness. Any escalation could further destabilise investor confidence and market stability.
The Indian market’s stretched valuations have set the stage for a necessary correction note that current prices are not sustainable.
Mixed financial results from India Inc. for the first quarter have failed to lift market spirits, showing that high valuations may not be justified by corporate performance.
Technical indicators add to concerns, with the Nifty 50 falling below its 20-day moving average, a bearish signal for market technicians.
