5 Reasons Why Sensex is Down by Over 1000 Points

Outlook Business Desk

Markets witnessed a sharp downturn on Monday, with benchmark indices Sensex and Nifty plummeting by nearly 2 per cent as recession fears continue to loom over global markets. Here are 5 reasons why markets are falling today

Stock Market

Weak Global cues

The US stock market continued to decline as fears of recession grew after nonfarm payrolls data fell short of expectations. Even Japan's Nikkei index dropped by nearly 7 per cent on Monday

Geopolitical Tensions

Tensions in the Middle East escalated after Hezbollah fired a barrage of rockets towards Israel in response to strikes that killed a senior Hezbollah commander. The news affected Israeli markets, causing the benchmark TA-35 stock index to drop as much as 2.7 per cent

FPI Outflow

Foreign Portfolio Investors (FPIs) have shifted from being net buyers to net sellers in Indian equities. As of August 3, FPIs sold Rs 1,027 crore worth of Indian shares, reversing their previous buying trend

Fed Rate Cuts

"Despite talks of a potential double-rate cut in September, bearish sentiments persist. Anxiety remains high, especially after Friday's unexpectedly weak July jobs report, suggesting that volatility will be the hallmark of the day," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

AI Hype Losing Steam

Last week, US stocks experienced a sharp decline, with the tech-heavy index, NASDAQ, entering the correction territory. Tech stocks like Nvidia and Google took a big hit as their valuations appeared to be overstretched, as per market analyst