Global Downturn Hits Indian Markets: Indices Plunge in Opening Session

Indian stock markets opened in the red on Wednesday, mirroring global markets. Nifty 50 dropped by 0.75%, and BSE Sensex fell by 0.85%. Experts cited weak economic data and global pressures, including US market losses, as key reasons for the decline.

Domestic stock markets mirrored global markets on Wednesday, opening with significant declines. The Nifty 50 index fell by 0.75%, or 189 points, to 25,089.95, while the BSE Sensex lost 703 points, or 0.85%, to open at 81,851.82 points.

Markets worldwide faced pressure following a notable downturn in US markets, which dropped by over 2% due to uncertainty surrounding upcoming Federal Reserve rate cuts. Banking and Market Expert Ajay Bagga stated, "The dip had been anticipated, and the September Effect is in full swing, historically making it one of the poorest performing months." Asian markets followed suit, with a 3% decline in major indices.

On the National Stock Exchange, all broad market indices, including Nifty Next 50 and Nifty 100, started the day with losses. The Nifty PSU Bank index emerged as the biggest loser, falling by 1.44%. Out of the Nifty 50 stocks, only 2 saw gains, while 46 declined, indicating strong selling pressure. Shrikant Chouhan of Kotak Securities noted a market indecision, with key breakout levels for day traders identified at 25350/82900.

Global markets also suffered; the US S&P 500 declined by 2.12%, and Nasdaq by 3.26%. European and Asian indices followed, with Germany's DAX, France's CAC, and the UK's FTSE all losing ground. Japan's Nikkei and Taiwan's Weighted index dropped more than 3%, underlining a widespread global market decline.

(With inputs from agencies.)