As Sensex falls on Monday, a look at the five biggest declines on the bourses
The recent global stock market rally has largely been fueled by widespread expectations of a smooth economic transition for the US. However, this optimism is now being challenged by a slowdown in US job creation for July and a sharp increase in the US unemployment rate to 4.3%.
Further, escalating geopolitical tensions in the Middle East and the unwinding of the Yen carry trade are contributing to market concerns.
Sensex Today | Stock Market Highlights 05 August 2024: As concerns over a potential U.S. recession prompted investors to move away from riskier assets, the Sensex opened Monday’s trading session more than 2,400 points lower, while the Nifty fell below the 24,000 mark due to heavy selling in major stocks.
The market capitalization of all listed companies on the BSE dropped by Rs 14 lakh crore.
After reaching the 25,000 mark for the first time last week, the Nifty succumbed to corrective pressures and remained susceptible to bouts of profit-taking at elevated levels.
On Monday, several regional equity indexes faced significant declines, with Japan and the tech-focused markets of Taiwan and Korea experiencing the heaviest losses, each seeing their benchmarks drop by more than 7%. The MSCI Asia Pacific Index fell by as much as 4.3%, heading towards a technical correction and threatening to wipe out all its gains for the year.This sell off is more of a short term volatility by way of profit booking and is no indicator of any long term panic mode set in the Indian equities. For investors looking at entering the equity market, a staggered entry during volatile periods can be considered.
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