Sensex, Nifty Down: Benchmark indices took a sharp plunge on Wednesday, following the movement of global markets. Investors are worried about US economic data, which might have an impact on the interest rate decision by the Federal Reserve.
While historical data shows that September is usually considered the worst month for global stock markets as volatility takes the better of the market mood, domestic investors were initially quite positive as the month started with fresh market highs for them.
At 2:30 pm, Sensex was trading at 82,230.49 level down by nearly 330 points, whereas NSE Nifty followed the trail and was down by around 119 points, trading at 25,155.90 level.
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Top gainers from the Sensex pack included Asian Paints, Hindustani Unilever, Sun Pharma, Ultra Cement and Bajaj Finserv. On the other hand, Mahindra and Mahindra, Larsen and Toubro, Infosys and Axis were the top losers.
Why Markets are down today?
"Historically September has been a weak month for global markets. This has been true for the last four years. Going by early trends, this might again turnout to be true this year, too," Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Wall Street's most beloved stock Nvidia was down by nearly 10 per cent on NASDAQ yesterday. The chip-maker witnessed its biggest single-day decline leading to a loss of nearly $278 billion in market cap. Meanwhile, the broader market index, S&P 500 fell by more than 2 per cent on September 3.
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Japan's Nikkei was down by more than 4 per cent on Wednesday.
"The selloff in US markets yesterday was triggered by growth concerns. There are indications of US manufacturing moving into contraction thereby threatening the soft landing expectation, which has been the pillar of support for the mother market the US and consequently for other markets, too," he further added.
