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US to go into recession? Indian stock market falls after Wall Street sell-off

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US to go into recession? Indian stock market falls after Wall Street sell-off
US to go into recession? Indian stock market falls after Wall Street sell-off

Aug 02, 2024 11:32 AM IST

Tata Motors and Maruti were the major losers and were down up to 4 per cent each while Tata Steel shed 3 per cent.

Indian stock market tracked steep losses in global peers as fears of a possible slowdown in the US resurfaced. The BSE Sensex opened today (August 2) falling 709 points at 81,159. NSE, which topped the 25,000-mark for the first-ever time, cracked more than 1 per cent to a low of 24,751. In the broader market, the BSE MidCap index plunged 1.6 per cent to 47,500 and SmallCap shed 1.4 per cent at 54,175.

Stock market today: A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)
Stock market today: A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)

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Which stocks are gaining and losing today?

Among Sensex 30 stocks, Tata Motors and Maruti were the major losers and were down up to 4 per cent each while Tata Steel shed 3 per cent. Larsen & Toubro, Tech Mahindra, Adani Ports, NTPC, JSW Steel, ICICI Bank, UltraTech Cement and SBI were the other major laggards. 

What happened in the US markets?

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The US market plunged sharply following tepid economic data as US weekly jobless claims rose and manufacturing growth contracted more-than-expected fueling concerns regarding recession in the country. Initial jobless claims rose the most since August 2023 to 249,000 for the week ended July 27. 

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The ISM manufacturing index, barometer of factory activity in the US, also came worse-than-expected at 46.8 per cent. The manufacturing growth was forecast to be 48.2 per cent. Earlier, the US Fed left key rates unchanged in the July meeting and hinted of a possible rate cut in September.

Owing to this, the Dow Jones Industrial Average dropped 1.2 per cent on the Wall Street while S&P 500 shed 1.4 per cent and the tech heavy Nasdaq Composite slipped 2.3 per cent.

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