Bloodbath In Markets Across The World: 10 Points

As the month of August began, the stock markets witnessed an alarming crash across the world. Countries such as the United States, Japan, India and other major Asian players have been significantly affected. While some described it as a ‘bloodbath,’ others called it ‘Black Monday.’

Amid growing fears of escalating tensions in the West Asia and a potential recession in the US economy, the global stock market meltdown was provoked by large scale sell-offs. Asian stock markets experience the biggest punch with Japan and the markets of Korea and Taiwan witnessing the heaviest losses.

Read Also: Nikkei Logs Second Largest Drop, US Stock Market Plunges: Global Recession Ahead?

1. The Bombay Stock Exchange fell nearly 3,300 points while Nifty fell below 2,400 within two days of selloff
2. Since its peak in mid-July, Taiwanese stocks went down nearly 18 percent although they do remain up over 11 percent for the year.
3. Sensex and Nifty dropped over 3 percent each as sell-off intensified across the board. Sensex traded 2,450.32 points, or 3.03%, lower at 78,531.63, while Nifty 50 tumbled 696.35 points, or 2.82 percent, to 24,021.35.
4. Nearly Rs 15 lakh crore in a session were lost by the investors as the overall market capitalisation of the BSE-listed companies plunged to nearly Rs 442 lakh crore from nearly Rs 457 lakh crore in the previous session.
5. The Yen crashing has hit Japan hard with the world’s largest financial newspaper, Nikkei, witnessing a 12 percent plunge or 4,451.28 points, to 31,458.42. This is the largest points drop in history.
6. In South Korea, Kospi plunged 8.1% before trading was paused for roughly 20 minutes, citing the exchange’s circuit breakers. The Kosdaq plunged 11.71 percent.
7. Taiwan Weighted Index fell more than 8 percent amid selling in technology and real estate stocks. Hong Kong Hang Seng index declined 1.61 percent, while mainland China’s CSI 300 fell 0.48 percent.
8. Following a drop on Wall Street last week, US stock futures fell with Nasdaq 100 futures dropping over 6 percent and S&P 500 contracts declined over 3 percent.
9. The Indian rupee hit an all-time low on Monday, declining to a record low of 83.82 against the US dollar. The Japanese yen traded at 143, a 2.3 percent increase versus the dollar.
10. Tanvi Kanchan, Head – UAE Business & Strategy, Anand Rathi Shares and Stock Brokers, said, “This sell off is more of a short-term volatility by way of profit booking and is no indicator of any long-term panic mode set in the Indian equities. For investors looking at entering the equity market, a staggered entry during volatile periods can be considered.”