Due to the downturn in global stock markets, the Indian stock market is heading towards its biggest single-day decline in two months

News on August 5, India's main stock index is set to record the biggest drop in two months, due to global sell-offs triggered by concerns about a slowdown in the U.S. economy, which weighed on local stocks. The NSE Nifty 50 Index fell by as much as 3.3%, marking its biggest single-day drop since June 4 when Prime Minister Modi's party suffered an unexpected setback in elections. The BSE Sensex Index experienced a similar decline. Traders' views on future volatility have changed dramatically, with the NSE's India Volatility Index - an indicator measuring price fluctuations over the next 30 days based on option prices - rising by up to 62%, marking its largest increase since August 2015.