For Quick Alerts
For Daily Alerts

Sensex Drops Near 400 Points As Global Markets See Carnage


Benchmark indices fell in trade, as fears of a global recession gathered momentum. The Sensex dropped below the 38,000 points mark, while the Nifty fell below the 11,400 points mark.

The Sensex was down 390 points, while the Nifty shed 118 points in early trade.

On Friday, the inverted yield curve on US treasuries turned negative. This actually happens when the spread between the 3-month treasury bill and the 10-year one, turns negative. It is the first time since 2007 this has happened.

Sensex Drops Near 400 Points As Global Markets See Carnage

This inversion happens when the short term rates, move ahead of the long term rates. It is generally perceived as a sign of weakness and an indication that we maybe heading for a recession.

In the past, when the yield has turned negative a recession has almost always followed in a year's time.

Heavyweights from the Nifty, including the likes of Reliance, ITC and TCS were trading lower. Banking stocks, which have so far been on a roll, also dropped in trade. ICICI Bank, State Bank of India and IndusInd Bank were down 1-2 per cent.

Metal stocks were the worst hit in trade on worries of a global slowdown. Vedanta and Hindalco were down more than 3 per cent each.

In Asia, markets were seeing deep corrections. The Japanese Nikkei was down more than 3 per cent, while the Hang Sang also fell 2 per cent. On Friday, both European and Asian markets had closed sharply lower.

Read more about: sensex nifty
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more