Indian Stock Market Plunges Following US Market Decline
Stock Market Crash: The sharp decline in the US stock market on Monday had a clear impact on the Indian stock market on Tuesday. The Sensex and Nifty opened in the red. IndusInd Bank shares witnessed a significant drop of up to 20%. Shares of major companies in the tech and auto sectors also experienced declines.
Sharp Decline in Sensex and Nifty
The Indian stock market opened extremely weak on Tuesday. The Sensex opened at 73,743.88, down 400 points, while the Nifty began trading at 22,345.95, down 130 points. In early trading, the Sensex fell to 73,672, and the Nifty reached 22,314. Besides IndusInd Bank, major shares like Infosys, Tech Mahindra, and Tata Motors also saw substantial declines.
Over 1700 Shares Decline at Market Open
Tuesday brought bad news for investors as the market opened. While 617 company shares opened in the green zone, 1715 were trading in the red. Shares of 105 companies showed no change. The market downturn saw the tech and auto sectors experience the most significant drops.
Shares Experiencing the Largest Drops in Early Trading
Amidst the Indian stock market decline, several companies experienced significant share price drops. IndusInd Bank shares fell by up to 20%, while Infosys dropped 3.24%, M&M 2.99%, Zomato 2.49%, and Tech Mahindra 1.28%.
Among mid-cap companies, Bandhan Bank shares fell 4.43%, Godrej India 4.25%, RVNL 3.53%, and AU Bank 3.46%. In the small-cap segment, Gensol shares were trading at their lower circuit limit of 5%.
Reasons for the US Market Decline
The US stock market saw a significant decline on Monday, causing investor anxiety. The Dow Jones fell by as much as 1100 points, eventually closing at 41,911.71, down 890 points. The S&P 500 fell by 2.70%, while the Nasdaq dropped 4% to close at 17,468.32.
Analysts suggest that the primary cause of the US market decline may be signals from the Federal Reserve regarding interest rates. Increased interest rates could make borrowing more expensive for investors, putting pressure on the market.
