Indian stock markets are experiencing a severe crash on Monday, August 5, 2024 with major indices plummeting. The Sensex is crashing 3.08% shedding 2,491.21 points to 78,490.74. The Nifty 50 is reflecting this decline falling 2.98% or 736.90 points to 23,980.80. The banking sector is also hit hard, with Nifty Bank dropping 2.86% or 1,468.45 points tBank dropping 2.86% or 1,468.45 points to 49,881.70.
o 49,881.70.

This sharp decline isn’t isolated to India. Global markets are facing a crash, with Japan’s Nikkei 225 plunging 7.93%, leading to a trading halt. Korea’s KOSPI is down 5.4%, while US futures point to a negative open with the Dow, S&P 500, and NASDAQ futures down 0.5%, 1.2% and 2.1% respectively.

The cryptocurrency market isn’t spared either, with Bitcoin and Ethereum seeing massive drops of 10% and 21% respectively.

Several factors are contributing to this market meltdown. US recession fears have strengthened after July’s unemployment rate jumped to a near three-year high of 4.3%. The escalating tensions between Iran and Israel following the killing of Hamas political chief Ismail Haniyeh are adding to investor anxiety. Additionally the unimpressive Q1 results so far from Indian companies and technical factors like the Nifty 50 breaking below its previous higher low are fueling the sell-off.

Analyzing the top losers in the Indian market, ONGC is urrently down 6.60% to Rs 308.30, Tata Motors falling 5.90% to Rs 1,031.95, Adani Ports dropping 5.56% to Rs 1,499.65, Tata Steel declining 5.08% to Rs 150.18 and Hindalco: Losing 5.05%, trading at Rs 615.30

Other significant losers include SBIN (-4.91%), JSW Steel (-4.70%), Infosys (-4.65%), Coal India (-4.51%) and Maruti (-4.28%).This market crash is wiping out over Rs 10 lakh crore of investor wealth in a single day, highlighting the severity of the decline.

The technical breakdown of the Nifty 50 below its previous higher low is likely to lead to further downside in the coming days according to market technicals. This technical factor combined with the bearish fundamentals is creating a strong bear storm for the markets.

The widespread nature of this sell-off is evident in the performance of mid-cap and small-cap indices, which are cracking heavily also. This indicates that the negative sentiment is not limited to blue-chip stocks but is pervasive across the market spectrum.

As the trading day progresses, investors and traders are closely watching for any signs of support or further deterioration. The global nature of this sell-off suggests that developments in international markets, particularly in the US and the Middle East, will continue to play a crucial role in determining the near-term direction of Indian markets.