Indian stock markets faced a severe downturn today, mirroring the global market turmoil. Both the Nifty and Sensex recorded significant losses during the opening trade, with the Sensex plunging 2600 points to 78,385.49 and the Nifty falling 463.50 points to 24,254.20.
The benchmark indexes, Nifty 50 and S&P BSE Sensex, ended their longest weekly winning streak in over 14 years on Friday. The decline was primarily driven by information technology stocks, following weaker-than-expected economic data from the United States, which triggered a global selloff.
Adding to the market woes, the Indian Rupee opened on a muted note and hit an all-time low of 83.80 against the US dollar. The persistent risk-off sentiment in global markets kept the dollar strong.
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Economic data released post-market hours on Friday revealed that US job growth slowed more than anticipated in July. This unexpected slowdown sparked fears of an economic downturn, weighing heavily on global equities. Moreover, the upcoming US elections in November are likely to maintain a cautious atmosphere among investors.
The escalating tensions in the Middle East are also contributing to market uncertainty. The assassination of Hamas leader Ismail Haniyeh in Tehran, allegedly by Israel, has intensified geopolitical concerns.
Within the Sensex pack, major decliners included Tata Motors, Tata Steel, JSW Steel, Adani Ports, Maruti, and Reliance Industries. On the other hand, Sun Pharma and Hindustan Unilever managed to trade in positive territory amidst the broader market decline.
