Biggest fall in stock market in 4 years, investors lost 16 lakh crores, now what next?

The impact of recession in America is also being seen on the Indian market. Monday, the first day of the trading week, is also looking like a 'Black Monday' for the stock market. As soon as the market opened, the Indian stock market saw a tsunami of decline today and the Sensex-Nifty crashed. This is the biggest drop in the stock market since March 2020, where investors lost Rs 16 lakh crore.

However, the market decline today is due to decline in global markets. A sharp decline in the US markets has opened domestic stock markets. The Bank Nifty opened over 650 points lower and fell 800 points to 50560 in the opening minutes. Sensex has broken over 2500 points till the time of writing.

As soon as the market opened, the stock market collapsed like a house of cards

The market broke as soon as it opened on Monday. While BSE's 30-share Sensex opened at 79,700.77, down 1200 points from its previous close on Monday, the National Stock Exchange's Nifty-50 also opened trade down 424 points. Earlier last Friday, a tsunami-like scene was seen in the Indian stock market. On Friday, the Sensex closed down 885.60 points at 80,981.95 points. As for the Nifty 50, it closed down 293.20 points at 24,717.70.

Now what next?

Market expert Arun Kejriwal says this is the biggest decline of March 2020 if the day of election results is excluded. According to Kejriwal, after covid, everyone felt that the most money can be made in the market, so everyone started investing in it now the market has shown that the market is supreme. Nothing is bigger than the market. According to Kejriwal, correction can be seen in 2-3 days. In such a situation investors have no option but to wait.

The market collapsed due to recession in America

The US manufacturing PMI data fell sharply due to the stock market tsunami, signaling that a US recession may be on the way. In addition, the number of unemployed has also increased to a record, which has had a direct impact on the American market. At the same time, the crisis has deepened due to the announcement of layoffs in the IT sector, due to which the global IT sector is also under severe pressure.

The unemployment rate in America has reached 4.3 percent. This is the highest unemployment figure in America since October 2021. The increase in the unemployment rate has been higher than market expectations and has once again raised fears of a recession. Analysts believe that the sharp rise in unemployment is a sign of an impending recession.

Dow Jones Industrial Average futures were down more than 375 points (about 1 percent) at 7 a.m. today. Earlier on Friday, the Dow Jones Industrial Average fell by 610.71 points or 1.51 percent. While the S&P 500 index lost 1.84 percent and the tech stock focused index Nasdaq Composite lost 2.43 percent.

This is also the reason

Apart from this, the Bank of Japan has increased the interest rate due to which the stock market of Japan has also decreased. At the same time, tensions are rising in the Middle East after the assassination of a Hamas chief, making the threat of war between Iran and Israel even darker. This factor is also affecting the global market, the impact of which is being seen on the stock market. Japan's stock market has declined by 12 percent and Korea's stock market by 9 percent.

Investors get Rs. 16 lakh crores has been lost

Today in this decline of the market, the market cap of companies listed on BSE is Rs. 16 lakh crore has fallen, meaning that as soon as the market opens, investor assets are worth Rs. 16 lakh crore, as BSE's market cap fell to Rs. 444.35 lakh crore has happened. On Friday, the BSE's market cap was Rs 457.21 lakh crore, which fell to Rs 4,47,64,692.65 crore as soon as the market opened today i.e. on 5 August 2024. It means that the investor's capital is Rs. There has been a reduction of more than 16 lakh crores.