On Monday, Indian stock markets saw a sharp drop, with the Sensex and Nifty 50 falling significantly. This decline was part of a broader global sell-off due to worries about a possible US recession and rising tensions in the Middle East.
Worldwide, stock markets descended rapidly as investors grew concerned about a slowing US economy and the Federal Reserve's slow response to the economic conditions. In India, the Sensex fell by 2,450.32 points, or 3.03%, ending at 78,531.63. The Nifty 50 dropped 696.35 points, or 2.82%, to 24,021.35.
Investors lost nearly ₹15 lakh crore in a single day as the total market value of BSE-listed companies fell from about ₹457 lakh crore to nearly ₹442 lakh crore.
In Japan, stock markets also suffered heavily. The Nikkei 225 index dropped 12.40%, or 4,451.28 points, to 31,458.42, its biggest points drop ever. The broader Topix index fell 12.23%, or 310.45 points, to 2,227.15. This decline marked a bear market, with indices down over 20% from their peaks.
The Japanese yen strengthened significantly, reaching 141.73 against the US dollar, its highest level since January. This rise in the yen added pressure on Japanese stocks.
Other Asian markets were also affected. South Korea’s Kospi index fell 8.1% before trading was briefly halted due to the exchange’s circuit breakers. The Kosdaq index dropped 11.71%. Taiwan’s main index, Taiwan Weighted Index fell over 8% because of declines in technology and real estate stocks. Hong Kong’s Hang Seng Index decreased by 1.61%, and China’s CSI 300 Index fell 0.48%.
In India, the rupee fell to a record low of 83.82 against the US dollar. It was last quoted at 83.8125, down from 83.75. The Japanese yen, often seen as a safe investment, strengthened to 143 per dollar, up 2.3% from recent levels, according to Reuters. In the past three weeks, the yen has strengthened by 10% against the dollar. This rise is partly due to the Bank of Japan’s recent interest rate hike and a reduction in yen-funded carry trades.
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