After closing the trade for the day on August 1 on a positive note, the markets have returned to trade on August 2 in deep red. The marquee Indian indices dropped by 1 per cent in the early hours of the day.
Indian Markets In Red
This is seen by many observers as a domino effect of the development in the US markets that also drowned in red in the intraday trade.
The BSE Sensex dropped by 840.55 points or 1.03 per cent, dropping to 81,027.00 points. The NSE Nifty also declined in value by 270.95 points or a massive 1.08 per cent. The Nifty dropped to 24,739.95.
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In addition, Nifty bank also took a hit of the red wave as the index dropped by 282.20 points or 0.55 per cent, decreasing to 51,281.80.
Stocks of major companies in the Indian market were trading in red, with a few exceptions, making marginal gains in the early hours of the day' trade.
Some of the major losers include automobile company, Maruti, which lost over 3 per cent of its value. This was followed by another automobile company, Tata motors, that lost close to 3 per cent of its value. This could also be attributed to the disappointing numbers of many auto companies that announced their results on August 1.
From Atlantic and Beyond
Some have attributed this development at Dalla Street to the debacle that came to pass in the US markets. The US markets that were looking at possible rate cut optimistically collapsed as the Federal Reserve retained its interest rate in the range of 5.25 to 5.50 per cent.
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The major indices at Wall Street ended the day's trade with palpable losses. The Dow Jones Industrial Average dropped by 1.21 per cent or 494.82 points, closing at 40,347.97. Meanwhile, the disillusioning Q2 numbers churned out by many of the tech companies are also the reason for this drop in investor sentiment.
The tech-heavy indices of S&P 500 and Nasdaq Composite also suffered major losses, with Nasdaq dropping a monumental 2.30 per cent or 405.26 points, dropping to 17,194.14.
