The Indian stock market experienced a significant decline on Friday, August 2, 2024. The BSE Sensex fell by 885.6 points (1.08%) to close at 80,981.95, while the Nifty 50 dropped by 256.7 points (1.03%) to settle at 24,761.
The Indian stock market faced a sell-off due to a sharp decline in global markets. The US stock market plunged overnight after weak economic data raised concerns about a slowdown and stoked recession fears.
The Indian stock market benchmark indices, Sensex and Nifty 50, were expected to open lower on Friday followed by this global sell-off. This marks a change from the previous five consecutive sessions of gains.
Here’s a summary of the key market indices todays performance (August 02, 2024):
Index | Close | Change | % Change |
| BSE Sensex | 80,981.95 | -885.6 | -1.08% |
| Nifty 50 | 24,761 | -256.7 | -1.03% |
| Nifty Bank | 51,454 | -149 | -0.29% |
| BSE Midcap | 47,102.76 | -572.47 | -1.20% |
| BSE Smallcap | 54,312.92 | -316.37 | -0.58% |
Factors that may contributed to the decline:
Weak global cues: Negative sentiment in global markets, driven by concerns over US economic data and the possibility of a recession, influenced the Indian market.
Profit booking: After a prolonged rally, investors booked profits, leading to a sell-off in the market.
Rising crude oil prices: Increased crude oil prices raised concerns about inflation and its potential impact on the Indian economy.
FII selling: Foreign institutional investors (FIIs) were net sellers in the Indian market, adding to the selling pressure.
Technical factors: Technical indicators suggested an overbought market, prompting some traders to sell their positions.
The sell-off was broad-based, with most sectors ending in the red. However, the banking sector was relatively resilient, with the Nifty Bank index showing a marginal decline.
Overall, stock market decline on August 2, 2024 as weak global cues played a significant role. Negative sentiment in global markets, driven by concerns over US economic data and the possibility of a recession, influenced the Indian market and triggered a sell-off.