Bloodbath in Indian stocks as benchmark indices crash from record highs

India’s benchmark indices have taken a hammering since reaching record highson Thursday. The bloodbath in Indian shares is driven by a rout in global stock markets, with other Asian peers too in a sea of red.

Data on Friday showed the US Economy is fast hurtling towards a recession, with jobs data pointing to extreme weakness. This prompted questions that the federal reserve is already late in its support to the fledgling US Economy. US Stocks bore the brunt of the selloff on Friday. However, Monday's trading resulted in a deeper global wealth rout.

Weak global sentiment weighed on Indian stocks heavily. The blue-chip Sensex index fell over 2,500 points to trade at around 78,500, marking the lowest level since late June. The broader nifty index too crashed over 3 percent to trade just above 24,000 points.

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This comes just when foreign investors had plunged into Indian stocks to stall a selling spree. The last time domestic shares saw such a significant decline was on the election results day on June 4, when nearly 400 billion dollars were wiped out.

Last week on Thursday, both benchmarks had hit new lifetime highs breaching key new milestones. The Sensex index crossed the 82,000 mark for the first time ever to hit an all-time high of 82,129. But on Monday the index crashed to a low of 78,580 points. That is nearly 4,000 points lower from the high on Thursday.

Nifty, too, broke through the 25,000 level for the first time ever on Thursday. But has since fallen over 4 percent from its record high of 25,078.