Stock Market Crash: Investors' wealth on Monday morning plummeted by Rs 9.51 lakh crore as the Indian equity markets experienced a major downturn. The benchmark Sensex plunged over 2,400 points, reflecting a sharp decline in global markets.


The 30-share BSE benchmark index tanked 2,401 points to 78,580 in early trade. This decline led to a reduction in the market capitalisation of BSE-listed companies by Rs 9,51,771.37 crore, bringing it down to Rs 4,47,65,174.76 crore ($5.35 trillion).


"The global market is reeling as bears enter with a cocktail of bad news. The fear of a reverse Yen carry trade, following an interest rate hike in Japan, was the initial catalyst. This was compounded by fears of a recession in the USA after extremely poor jobs data, which spooked market sentiment," said Santosh Meena, Head of Research at Swastika Investmart Ltd. He noted that the Indian equity markets are showing signs of a significant correction following a prolonged bull run.


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Asian markets were also affected, with Seoul, Tokyo, Shanghai, and Hong Kong trading sharply lower. Japan's benchmark Nikkei 225 index fell by as much as 8.1 per cent early Monday, extending the sell-offs from last week due to concerns about the US economy.


US markets closed significantly lower on Friday. V K Vijayakumar, chief investment strategist at Geojit Financial Services, explained, "The rally in global stock markets has been driven mainly by consensus expectations of a soft landing for the US economy. This expectation is now under threat with the fall in US job creation in July and the sharp rise in the US unemployment rate to 4.3 per cent. Geopolitical tensions in the Middle East are also contributing to market instability."


Among the Sensex components, Tata Motors, Maruti, Tata Steel, Infosys, Tech Mahindra, and JSW Steel were the biggest losers. Conversely, Hindustan Unilever, Sun Pharma, Nestle, and Asian Paints managed to trade in positive territory.


Foreign Institutional Investors (FIIs) sold equities worth Rs 3,310 crore on Friday, according to exchange data.