Domestic equity markets opened lower on Friday as heightened global volatility, driven by sharp fluctuations in gold and silver prices, weighed on investor sentiment.
The Nifty 50 index opened at 25,247.55, down 171.35 points or 0.67 per cent, while the BSE Sensex slipped 616.32 points, or 0.75 per cent, to 81,950.05 in early trade. The decline reflected cautious investor positioning amid turbulence across global asset classes.
Market participants reacted to dramatic swings in precious metals prices, which triggered broader uncertainty in financial markets worldwide.
Ajay Bagga, Banking and Market Expert, said that gold and silver witnessed extreme volatility, with prices plunging by 9–12 per cent before rebounding sharply. “Comex gold dropped from near USD 5,625 to around USD 5,100 on Thursday, wiping out about USD 3.4 trillion in notional value based on global supply, while silver swung from over USD 121 to USD 106.60,” he said.
Bagga attributed the sharp correction to profit-taking after gold’s strong rally of nearly 90 per cent over the past year, driven by geopolitical tensions and central bank purchases, and silver’s surge of around 270 per cent due to industrial demand. Prices later recovered most of the losses, with gold closing near USD 5,539 and silver around USD 117. The selloff also affected other assets, including Bitcoin and equities, while Microsoft shares fell about 10 per cent amid concerns over cloud growth.
He described Thursday as a historic session marked by “flash crashes” and rapid recoveries across multiple asset classes, adding that Indian markets are navigating the dual pressures of global volatility and key domestic developments.
Broader market indices also remained under pressure, with the Nifty 100 down 0.3 per cent, Nifty Midcap 100 declining 0.67 per cent, and Nifty Smallcap 100 falling 0.51 per cent.
Sectoral indices on the NSE mostly traded lower. The Nifty Auto index fell over 1 per cent, Nifty FMCG declined 0.20 per cent, Nifty Metal dropped 1.71 per cent, Nifty PSU Bank eased 0.25 per cent, Nifty Media slipped 0.7 per cent, and Nifty Realty fell 0.42 per cent.
Among individual stocks, Vedanta shares declined nearly 5 per cent at the open, while Hindustan Zinc also fell around 5 per cent, reflecting pressure from global commodity volatility.
On the institutional front, foreign institutional investors (FIIs) were net sellers of equities worth Rs 393 crore on Thursday, while domestic institutional investors (DIIs) provided support with net purchases of Rs 2,638 crore.
Gaurav Seth, CEO of 5paisa, said the recent depreciation of the Indian rupee is driven by a mix of global and domestic factors. He pointed to sustained FII outflows, geopolitical developments, higher US tariffs on Indian exports, and the absence of a near-term India–US trade agreement as key contributors to currency pressure.
Asian markets also traded lower, adding to weak sentiment. Japan’s Nikkei 225 fell 0.3 per cent, Singapore’s Straits Times declined 0.16 per cent, Hong Kong’s Hang Seng dropped 1.73 per cent, and Taiwan’s Weighted Index slipped 1.15 per cent.
-ANI
