India’s benchmark stock market indices, the Sensex and the Nifty 50, witnessed a sharp sell-off on Monday as declines in global stocks intensified on fears of a US recession and escalating geopolitical tensions in the Middle East.
Global stock markets fell as the sell-off was fueled by growing concerns that the US economy is slowing and the Federal Reserve is behind the curve with policy support. The data showed a weakening of the US labor market, triggering a closely watched recession indicator.
“This sell-off is more of short-term volatility in the form of profit-taking and is no indication of a long-term panic mode set in Indian equities. For investors looking to enter the stock market, a phased entry can be considered during volatile periods,” said Tanvi Kanchan, Head of UAE Trading and Strategy, Anand Rathi Shares and Stock Brokers.
The impact was seen in markets around the world – from Asian stock markets to currency markets to Bitcoin prices.
Indian stock market
India’s benchmark Nifty 50 and Sensex fell more than 3% each as selling intensified across the board. The Sensex was trading 2,450.32 points, or 3.03%, lower at 78,531.63, while the Nifty 50 was down 696.35 points, or 2.82%, at 24,021.35.
Investors lost nearly ₹15 crore during today’s stock market crash as the total market capitalization of BSE-listed companies fell to nearly ₹442 crore from nearly ₹457 crore in the previous session.
Cryptocurrencies
Cryptocurrencies also reeled under a heavy sell-off on Monday amid risk aversion in global markets, with bitcoin prices down around 15%.
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The price of the top token Bitcoin traded 15.5% lower at $51,323.58, adding to last week’s 13.1% decline, the worst since the FTX exchange imploded. The price of Ethereum fell by 22.3% to $2,262. Most other major cryptocurrencies were deep in the red.
Gold rate today
Gold prices rose on Monday on safe-haven demand as global financial markets are in risk-averse mode. Spot gold rose 0.14% to $2,446.83 an ounce after falling 1% earlier in the session. U.S. gold futures rose 0.8% to $2,488.50.
MCX gold was trading 0.19% higher at ₹69,925 per 10 grams today, while MCX silver was down 0.39% at ₹82,168 per kg.
