The festive season has kicked off with Dhanteras, or Dhantrayodashi, bringing cheers for investors as domestic benchmark indices continue a sharp rally despite a deep global market sell-off triggered by a rout in tech and artificial intelligence (AI) stocks. Adding to the festive cheer, precious metals including gold and silver dipped, offering much-needed respite to common people, as buying gold or silver today is considered auspicious and symbolises lasting prosperity.
Stock markets defy global sell-off
Benchmark indices registered their seventh day of rally on Friday, defying a global market rout, with the Sensex climbing 1,718 points and the Nifty regaining the 25,000 level, as sustained foreign fund inflows and easing crude oil prices boosted investor optimism.
The 30-share BSE Sensex jumped 1,718.01 points, or 2.17 per cent, to settle at the day’s high of 81,028.02. The 50-share NSE Nifty rallied 493.75 points, or 2.01 per cent, to end at the day’s high of 25,030.35.
Gold futures decline to Rs 1.41 lakh/10 grams
Gold prices on Friday declined Rs 2,178 to Rs 1,41,917 per 10 grams in futures trade amid weak spot demand. On the Multi Commodity Exchange, yellow metal contracts for December delivery traded lower by Rs 2,178, or 1.51 per cent, at Rs 1,41,917 per 10 grams in a business turnover of 2,152 lots.
Similarly, prices for 22-karat gold declined to Rs 1,30,543 from Rs 1,32,367 in Delhi. Rates also declined in other key cities, including Mumbai, Kolkata, Chennai, and Hyderabad.
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FII inflows boost domestic equities
A major catalyst behind the market rally is the noticeable turn in Foreign Institutional Investor (FII) activity. After extended periods of heavy capital outflows, foreign portfolio investors have returned as net buyers in Indian equities. Foreign Institutional Investors (FIIs) bought equities worth Rs 14,974.68 crore on Thursday, according to exchange data.
“Among the key factors, sustained foreign institutional buying continued to support domestic equities, with FIIs recording substantial net purchases in the previous session. The sharp global sell-off in technology stocks, driven by concerns over AI-related investments, weighed on Asian markets, although Indian IT stocks remained relatively resilient. Brent crude rebounded towards $100 per barrel following its recent sharp decline, while geopolitical developments and global risk sentiment remained key variables for investors,” said Ajit Mishra, SVP โ research, Religare Broking.ย
Bloodbath in global indices
In Asian markets, South Korea’s Kospi tanked 6.02 per cent, and Japan’s Nikkei 225 index fell 5.96 per cent. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended over 1 per cent lower.
European markets traded in negative territory.
The US equity markets ended sharply lower on Thursday. The Nasdaq Composite tumbled 5.52 per cent, the S&P 500 fell 4.36 per cent, and the Dow Jones Industrial Average fell 3.44 per cent.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)