GIFT Nifty slumps 200 points amid global market sell off

GIFT Nifty: The GIFT Nifty, a financial index that tracks the performance of the Nifty 50 index and is traded on the NSE International Exchange in GIFT City, Gujarat, has dipped by nearly 200 points ahead of the market opening amid a mass sell-off was witnessed in the United States and key Asian markets. 

As of 07:53 am, the GIFT Nifty index was trading 195.5 or 0.77 per cent down at 25,176.5 indicating a strong bearish sentiment in the market. The US market witnessed its worst sell-off after August 5 ahead of key data that will influence the Federal Reserve’s decision to lower interest rates on September 18. 

In US, benchmark indices including the S&P 500 index, the Nasdaq Composite Index, and the Dow Jones Industrial Average fell the highest since the early August rout after the Yen carry trade unwinding. The market dip was led by a strong sell-off in AI and semiconductor stocks along with energy, communication services, and materials. 

In the early trade in Asian stocks, Japan’s Nikkei slipped to its three-week low as key semiconductor stocks dragged the market down tracking US peers. As of 0134 GMT, Nikkei was trading 3.3 per cent down at 37,393.48, recovering marginally from the 4 per cent downturn in the early minutes of trade, its lowest since August 15.

Chinese and Hong Kong stocks also fell on Wednesday after growth fears looms over Shanghai. China’s services sector activity which slowed in August fueled the downturn along with global bearish sentiment. 

Most sectors in the Chinese markets including 5G Communication Index, energy stocks, and tech indices recording 2.5 per cent to 3 per cent in losses.