Stock Market Crash Today : Today is proving to be a Black Monday for the stock market. Today, on August 5, 2024, there is a stampede among investors in the market. Heavy selling is being seen in Sensex and Nifty. Sensex has fallen by more than 1500 points. While Nifty has come below the level of 24200. Be it banking or financial, IT and pharma or auto and metal, almost every sector is witnessing a decline. Meanwhile, today investors’ wealth of Rs 9 lakh crore sank in one stroke. When there was a continuous rally in the market from the day after the election results, what happened suddenly that the mood of the investors changed.
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Current Status of Sensex and Nifty
In today’s trading, Sensex is witnessing a weakness of more than 1600 points and it is trading at the level of 79,465.36. Whereas Nifty is down by about 500 points and it has come down to the level of 24,193. Whereas last week on Thursday, Nifty had crossed 25000 and Sensex had also reached close to 81200.
Investors lost Rs 9 lakh crore
Today, amid the huge fall in the market, investors got a big shock and they lost Rs 9 lakh crore. When the market closed on 2 August 2024, i.e. last Friday, the market cap of BSE listed companies was Rs 4,57,16,946.13 crore. But today it has come down to Rs 4,48,09,007.11 crore. That is, the market cap of BSE listed companies decreased by about Rs 9 lakh crore.
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What is the reason for such decline in the market
Santosh Meena, Research Head, Swastika Investmart, says that the global markets are in turmoil due to the fear of recession along with a cocktail of bad news. The fear of reverse yen carry trade after the increase in interest rates in Japan was the initial catalyst. At the same time, the unemployment figures in the US have been disappointing, which further worsened the sentiment and increased the fear of recession. China and Europe are already facing recession and the increasing geo-political tension is increasing further pressure on the markets.
The global market is witnessing its first meaningful correction after a long bull run. Investors and traders should be cautious and avoid rushing in immediately, as better entry levels may emerge. He says the outlook for the market remains very optimistic, but the possibility of a meaningful correction means investors should consider profit booking where there are valuation concerns.
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Will the market fall further?
Technically, Nifty has support at Budget Day low of 24075, next support is at 50-DMA around 23900. Below this, key support is at 23300 levels. On the upside, 24800-25000 will remain a key resistance area.
Dow Jones closed down by 611 points
On Friday, the US markets closed with a big decline due to fears of recession. On Friday, the Dow Jones Industrial fell by 611 points and closed at 39737.26. The NASDAQ Composite fell by 418 points and closed at 16776.16. While the S&P 500 index fell by about 11 points and closed at 5346.56.
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Heavy selling in Asian markets
Selling is being seen in major Asian markets in today’s trade. Talking about Asia, GIFT NIFTY is down by 1.16 percent while Nikkei 225 is down by 4.85 percent. Strait Times is down by 2.78 percent and Hang Seng is down by about 0.56 percent. Taiwan Weighted is down by 6.63 percent while Kospi is down by 5.63 percent. Shanghai Composite is down by 0.16 percent.
