Ajay Bagga, a banking and market expert, commented, “Expect more selling in the markets. However, as seen on June 4th and after the Union Budget in July, strong domestic liquidity might provide a buffer for Indian markets despite worsening global sentiment.” He also pointed out that the “Sahm Rule” had been triggered globally due to rising US unemployment rates, suggesting a potential US recession. The Sahm Rule, developed by macroeconomist Claudia Sahm, serves as an indicator of impending recessions.
Asian markets were also under pressure. The Japanese Nikkei 225 index fell sharply by over 1,600 points, or 4.85%, to 34,247.56, driven down by a recent rate hike from the Bank of Japan, which triggered the unwinding of Yen Carry trades and caused the Yen to appreciate. In Taiwan, the Taiwan Weighted Index dropped more than 6%, and Singapore’s Straits Times index declined around 3%.
Sensex Falls More Than 1,500 Points Amid Rising US Recession Fears. The global stock markets are struggling due to weak US economic data, raising doubts about the Federal Reserve’s ability to achieve a “soft landing” for the US economy.
