Domestic stock markets opened under heavy selling pressure on Friday. The heightened global market volatility was largely triggered by sharp swings in gold and silver prices. Investor sentiment remained weak as markets reacted to the steep decline and sudden rebound in precious metals.
Broader uncertainty across global asset classes added to the cautious mood. The Nifty 50 index opened at 25,247.55, slipping 171.35 points. The BSE Sensex began the session at 81,950.05, down 616.32 points.
This early weakness reflected investor caution. Global markets continued to witness sharp fluctuations throughout the session.
Banking and Market Expert Ajay Bagga provided detailed context. He noted gold and silver prices plunged 9-12 per cent before rebounding sharply. Comex gold dropped from near USD 5,625 to around USD 5,100 on Thursday.
This move wiped out USD 3.4 trillion in notional value based on global supply. Silver swung wildly from over USD 121 to USD 106.60 during the same period.
Traders cited profit-taking as a key reason. Gold had surged 90 per cent yearly on geopolitical tensions and central bank buys. Silver had jumped 270 per cent from strong industrial demand.
Prices recovered most losses by the close. Gold settled at USD 5,539 and silver at USD 117. The selloff also impacted Bitcoin, stocks, and Microsoft shares.
Bagga described Thursday as a historic day. He called it a day of flash crashes and V-shaped recoveries across almost every asset class. The Indian markets are caught between this global volatility and a crucial domestic week.
Broader market indices also remained under significant pressure. The Nifty 100 was down by 0.3 per cent. The Nifty Midcap 100 lost 0.67 per cent and the Nifty Smallcap 100 declined by 0.51 per cent.
Sectoral indices on the NSE mostly traded in the red. The Nifty Auto index fell by more than 1 per cent. Nifty FMCG slipped 0.20 per cent and Nifty Metal declined 1.71 per cent.
Further sectoral losses were seen. Nifty PSU Bank eased 0.25 per cent. Nifty Media dropped 0.7 per cent and Nifty Realty lost 0.42 per cent.
Stock-specific moves showed clear pressure. Vedanta shares declined nearly 5 per cent at the open. Hindustan Zinc also fell 5 per cent, reflecting high global commodity volatility.
On the institutional front, foreign institutional investors were net sellers. They offloaded equities worth Rs 393 crore on Thursday. Domestic institutional investors provided counter support with net buying of Rs 2,638 crore.
Gaurav Seth, CEO of 5paisa, commented on the rupee’s depreciation. He said it resulted from a combination of global and domestic factors. Significant FII outflows from Indian equities over past months naturally pressured the currency.
This was compounded by specific geopolitical developments. Seth pointed to the sharp increase in US tariffs on Indian exports. The absence of a near-term trade agreement between India and the US added to the strain.
Asian markets also traded lower, adding to the weak sentiment. Japan’s Nikkei 225 was down 0.3 per cent. Singapore’s Straits Times fell 0.16 per cent.
Other regional indices followed suit. Hong Kong’s Hang Seng index dropped 1.73 per cent. Taiwan’s Weighted Index declined 1.15 per cent, rounding out a tough Asian session.