Global Markets Plunge amid US Recession Fears and Bangladesh Coup

Mumbai: A perfect storm of economic and political uncertainty sent shockwaves through global financial markets on Monday. Fears of a looming US recession coupled with the news of a coup in Bangladesh triggered a steep decline in stock indices worldwide.

India was not spared from the turmoil. The benchmark Sensex plummeted by 2,222.55 points, closing at 78,759.40, while the Nifty shed 2.68% to end at 24,055.60. The rupee also hit a new low, depreciating by 16 paisa to close at Rs 82.88 against the US dollar. The combined market capitalization of BSE-listed companies evaporated by a staggering Rs 15.34 lakh crore.

The situation was even direr in Asia, with Japan’s Nikkei suffering its worst single-day loss since the infamous Black Monday of 1987. The index plunged 12.40% to 31,458.42, while the TOPIX fell 12.48% to 2,220.91. European markets also experienced significant declines.

Indian equities opened with a sharp drop of 2,600 points, with heavyweight stocks bearing the brunt of the selling pressure. The Nifty briefly dipped below the crucial 24,000 level as investors fled to safer assets. The market capitalization of BSE-listed companies contracted by Rs 17 lakh crore amidst the panic.