According to BlockBeats, on August 5, the major indices of the Indian stock market are set to record their largest decline in two months. Concerns over a slowdown in the U.S. economy have triggered a global sell-off, impacting local markets significantly.

The NSE Nifty 50 index experienced a drop of 3.3%, marking its steepest single-day decline since June 4, when Prime Minister Modi's party faced unexpected setbacks in the elections. Similarly, the BSE Sensex index saw comparable losses.

Traders' outlook on future volatility has shifted dramatically. The NSE's India Volatility Index, which measures expected price fluctuations over the next 30 days based on options prices, surged by 62%, the largest increase since August 2015.