Stock Market Today: All sectors bleed; Nifty end 3% lower; VIX spikes 66%
The stock market faced a tough day, often referred to as Black Monday, as both the Sensex and Nifty dropped by 3%. Every sector experienced losses, and the volatility index (VIX) surged by 66%.
India’s main stock indices:- the Sensex and Nifty 50, experienced significant declines on Monday, each dropping by 3%. With the exception of HUL and Zomato, all other stocks in the Nifty 50 ended the day in the red, with Trent, Tata Steel, and JSW Steel being the biggest losers. Additionally, the fear gauge, India VIX, surged by 66%, indicating that high volatility is expected in the near future.
Why are markets dropping?
The decline in the stock market began when U.S. President Donald Trump placed tariffs on more than 180 countries. This action led to a trade war, particularly with China, and raised worries about a possible global economic slowdown, especially a recession in the U.S. As a result, investors became more cautious.
Global markets are experiencing significant turmoil.
Asian markets have taken a sharp downturn, and Wall Street faced a major drop last week. Japan’s Nikkei index fell by 7.8%, reaching levels not seen since late 2023, while South Korea’s market decreased by 5%. In the U.S., S&P 500 futures dropped nearly 5% amid fluctuating trading, and Nasdaq futures plummeted by 5.7%, contributing to nearly $6 trillion in losses from the previous week. Europe is also feeling the impact, with the Stoxx 600 index down 5.3% and Germany’s Dax falling by 9.4%.
Investors need to consider their next steps carefully?
Investors are encouraged to stay calm and not give in to panic selling. Instead, they should continue with their Systematic Investment Plans (SIPs). It’s also wise to steer clear of making large one-time investments since the market is still quite unstable.
The stock market is experiencing a significant downturn?
with the Nifty Midcap 100 and Nifty Smallcap 100 indices dropping by 3.63% and 3.88% respectively. Despite this sharp decline, both indices managed to bounce back strongly from their lowest points of the day.
Share Market Crash Update: What Influenced Today’s Market?
The market dropped sharply as concerns over high US tariffs and possible retaliation from other nations could lead to a trade war. Industries such as IT and metals have struggled more than the overall market because of worries about high inflation and slower growth, which could lead to a recession in the US. While the effects on India might not be as severe as in other countries, investors should be careful during this turbulent time. It’s best to concentrate on domestic themes, where a recovery is expected to be strong once things stabilize. read more