Aug 02, 2024 11:33 AM IST
Stock market crash: Market capitalization of all listed companies on the BSE declined by ₹4.26 lakh crore.
Sensex and Nifty opened lower today (August 2) dragged down by banking, auto, IT, and energy stocks after a sell-off on Wall Street amid concerns over US economy and a decline in Asian markets. The BSE Sensex was trading 814 points lower at 81,026 while Nifty50 was down 282 points at 24,728. Market capitalization of all listed companies on the BSE declined by ₹4.26 lakh crore.
All the major sectoral indices logged losses as Nifty Metal and PSU Bank fell the most over 2% while Nifty Smallcap100 and Nifty Midcap100 dropped more than 1% each.
Read more: US to go into recession? Indian stock market falls after Wall Street sell-off
What happened in the US markets?
The Indian stock market followed correction in US markets after US stocks tumbled due to weak manufacturing data which raised doubts about the US economy even though there were hopes of interest rate cuts by Federal Reserve. The Dow Jones Industrial Average fell 1.57% to 40,200, S&P 500 lost 1.76% to 5,424 and Nasdaq Composite lost 2.76% to 17,114.
Read more: Turkey blocks Instagram citing Hamas chief Ismail Haniyeh’s death posts
What is going in Asian markets?
Asian markets fell after weaker-than-expected US factory data. MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.8%. Japan’s Nikkei was headed for its worst day in over four years.
Are oil prices rising?
Read more: Intel lays off 15,000 employees. CEO says ‘painful but more tough days ahead’
Oil prices rose amid concerns over potential supply disruptions in the key Middle East production region. Brent crude futures gained 62 cents, or 0.75% while US West Texas Intermediate crude futures rose 61 cents, or 0.8%. Prathamesh Mallya, Angel One Ltd, said, “Crude prices are expected to remain under pressure due to weak global demand and disappointing economic data, despite ongoing supply concerns in the Middle East.”
