Stock Market Continues Sharp Fall Amid Economic Crisis and Declining GDP Rate; Sensex Closes 769 Points Down at 36,562, Nifty Crashes 247 Points

Mumbai, September 3: Amid the economic slowdown and the Gross Domestic Product (GDP) rate fall, the Sensex benchmark closed 769.88 points or 2.06 percent, lower at 36,562.91. Not on this, even the broader Nifty closed 247.40 points, or 2.24 percent, lower at 10,775.85. The equity benchmark indices were in the negative zone since Tuesday morning after the markets opened. The Indian Currency too closed a 72.32 against the US dollar.

Despite revamp measures and assurances by the Union Finance Minister Nirmala Sitharaman, the Indian market is plunging. The official data released after market hours on Friday showed that India's GDP growth slipped to an over six-year low of 5 (five) percent in the June quarter of 2019-20. This might be one of the reasons for the downfall in the market, especially in the manufacturing output and subdued farm sector activity. Economic Crisis Hits Automobile Sector: Tata Motors & Honda Lose Sales By Over 50% in August 2019; Here Are All The Details

Apart from this, reports also arrived that manufacturing sector activity declined to its 15-month low in August -- owing to slower increases in sales, output and employment. Also, auto sales of Tata Motors and Honda in India have dropped by over 50 percent compared to last August. Ranging from Maruti to Toyota, every company is suffering a loss, and their sales have dropped to by more than 20 percent.

Among the biggest gainers for Tuesday were Capri Global Capital (12.80%), Jindal Drilling&Inds (19.98%), Gallantt Metal (19.89%), Kirloskar Electric (14.30%), among others. While the loser Union Bank India (8.92%), Indian Bank (11.68%), Canara Bank (10.70%), PNB (8.47%), Tata Motors (4.49%), among others.

The decline in the stock market has continued following weak macroeconomic data and sustained outflows of foreign portfolio investors (FPI). Earlier in July, overseas investors had pulled out a net of Rs 2,985.88 crore from Indian stocks, even though the government rolled back enhanced tax surcharge on FPIs in August.  Economic Crisis in India: Nirmala Sitharaman Quashes Manmohan Singh's Claims on GDP Data, GST Collections Decline; Here's All the Financial Development From August 2019

The worst affected by the economic slowdown is the auto sector. On Sunday, the report arrived that sales in Maruti dropped by 33 percent, while Tata Motors's sales declined by 58 percent in August. Even Honda's sales too reduced by 51 percent. Among other losers in the automobile sector include -- Eicher-Volvo (41.7%), Toyota (21%), Mahindra & Mahindra (25%), Mahindra Tractors (17%) and Hyundai (9.54%) respectively.

(The above story first appeared on LatestLY on Sep 03, 2019 04:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).