Stock Market Crash Signals: Asian Markets Plunge From Japan to Korea, Sensex & Nifty Watch RBI Decision

The recent rebound in the Indian stock market is likely to face a major roadblock as negative cues pour in from international markets. On Wednesday, major Asian stock markets, ranging from Japan to South Korea, experienced severe downward pressure, while Gift Nifty, a key bellwether for the Sensex and Nifty, traded sharply lower.

Strong Recovery Yesterday, What to Expect Today?

In the previous trading session, Dalal Street witnessed robust buying momentum, with investors gaining substantially. The 30-share BSE Sensex surged by 685 points to close at 73,067, while the broader NSE Nifty scaled up by 220 points to settle at 22,776. Heavyweights like Trent, Kotak Mahindra Bank, HUL, Reliance Industries, IndiGo, and others drove the strong rally, bringing cheer to retail and institutional investors alike.

Bloodbath Across Asian Markets and Gift Nifty Warning

Reversing Tuesday's upbeat mood, global markets flashed red signals on Wednesday morning. Japan's Nikkei index plunged by over 700 points, Hong Kong's Hang Seng dropped by more than 150 points, and South Korea's KOSPI also witnessed notable selling pressure.

Reflecting these weak global trends, Gift Nifty—widely tracked as an early indicator for the Indian benchmark indices—traded down by over 100 points, signaling a cautious or gap-down opening for domestic indices.

All Eyes on RBI Policy Announcement

Apart from global market volatility, the trajectory of the Indian stock market will be heavily influenced by the Reserve Bank of India's monetary policy outcome. Investors are closely monitoring the announcements regarding repo rates, which could introduce heightened volatility into trading sessions.