Indian Bourses on Monday started with a very deep red opening of 24,302.85 points, Marking the levels even lower than budget day opening of 24,568.90 The NSE Nifty 50 already had a decline of over 2 per cent marking a low level of 24,192.50.
On the spot, the nifty 50 was trading around 24,271.55 points at 10.07 am, losing 446.15 points.
The sensex also saw a bloody red morning today, The BSE sensex plunged to low levels of 78,588.19 in the opening bell today. The index saw a day-low level of 78,580.46 points just after the opening bell today.
The Sensex was trading around 79,526.46 points at 10.24 am today and had lost more than 1500 points today. marking a sharp cut of more than 2 per cent.
Global triggers of today's bloody session
BoJ (Bank of Japan) monetary policy
Not only are the US markets collapsing, but the Nikkei 225 in Japan is too, as the Bank of Japan hiked its benchmark interest rate on Wednesday. The increase increased the Japanese yen's value relative to the US dollar.
The forex trade strategy of taking out a loan in yen and making investments in assets with higher yields is now costing more. The BoJ's decision to raise interest rates could be very painful for forex traders using this strategy and further agitate the world markets.
Recession fear in US
In July, the US saw a sharp slowdown in hiring, adding only 114,000 jobs as opposed to the average of 215,000 jobs per month in the previous year. Furthermore, the unemployment rate has increased to 4.3 per cent, the highest level since October 2021
Global stock markets have been rising primarily because of the general consensus that the US economy will have a soft landing. But when this faltered, every element worked together to create a bad feeling among investors. On Friday, the US markets collapsed, recording their worst day since 2020.
Fear of 'Oil Prices' in Gaza war
The Middle East is experiencing heightened tensions due to the pledges made by Iran, Hamas, and Hezbollah to exact revenge on Israel for the murder of Hamas's leader and Hezbollah's military chief.
Rising Middle East tensions would cause oil prices to soar. But as demand declines, oil prices are currently at an 8-month low. As a result, keen eyes will be trained on the Middle East for clues regarding crude prices.
