- By Aditya Pratap Singh
- Mon, 05 Aug 2024 11:04 AM (IST)
- Source:JND
Stock Market: The equity market benchmark Sensex and Nifty fell in early trade on Monday on the back of extremely weak trends in global markets amid fears of a slowdown in the US economy and foreign capital outflows. The 30-share BSE Sensex tanked 2,401.49 points to 78,580.46 points. The NSE Nifty fell 489.65 points to 24,228.05.
Tata Motors, JSW Steel, Tata Steel, Maruti, Adani Ports, and Reliance Industries were the biggest laggards from the Sensex pack. Sun Pharma and Hindustan Unilever were trading in green.
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In Asian markets, Seoul, Tokyo, and Hong Kong traded significantly lower, while Shanghai was more expensive. U.S. markets ended markedly lower on Friday. According to exchange data, foreign institutional investors offloaded equity worth Rs 3,310 crore on Friday.
Brent crude, the global benchmark, rose 0.35 percent to US$77.08 a barrel. The BSE benchmark fell 885.60 points, or 1.08 percent, to close at 80,981.95 on Friday on widespread selling pressure. The broader NSE Nifty ended 293.20 points or 1.17 percent at 24,717.70.
"Anxiety remains high, especially after Friday's unexpectedly weak US July jobs report, suggesting that volatility will be the hallmark of the day," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
"The rally in the global stock markets has been driven mainly by consensus expectations of a soft landing for the US economy. This expectation is now under threat with the fall in US job creation in July and the sharp rise in the US unemployment rate to 4.3 percent. Geopolitical tensions in the Middle East also are a contributing factor," said V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services.
(With PTI's Input)