Indian bourses hit hard by Black Monday: Indices plunge

Sensex and Nifty indices hit their budget-day lows

MUMBAI: Indian bourses joined their global peers in experiencing a Black Monday. Driven by fears of an imminent slowdown in the US economy, a record fall in the Japanese yen, and the escalating situation in West Asia, major global stock markets witnessed a massive selloff.

Reflecting these global trends, benchmark indices such as the BSE Sensex and the NSE Nifty closed the day in negative territory. The Sensex ended at 78,759.40 points, down by 2,222.5 points or 2.74 per cent. The Nifty slid 662 points or 2.68 per cent to close at 24,055.60 points.

Notably, the Sensex and Nifty indices hit their budget-day lows on Monday.

Intraday, the Sensex plunged by over 3 percent to its lowest level of 78,588 points, while the Nifty dropped 3.33 percent to 23,893 points.

The fear index, India VIX, surged to a record high of 20.37 points, up 42.23 percent, indicating substantial market volatility.

The bears took control, with 45 out of the 50 stocks listed on the Nifty50 ending in the red. Tata Motors, ONGC, Adani Ports, Tata Steel, and Hindalco were among the top laggards, each falling by more than 7 percent.

From the BSE space, 28 out of the 30 constituents of the Sensex ended lower, with Tata Motors and Adani Ports being the worst performers. Only Hindustan Unilever and Nestle India managed to close in the green.

The broader indices also ended in negative territory, with Smallcap and Midcap indices being the hardest hit, falling by over 4 percent.

Sectoral indices also faced decline, with losses in the Auto, Metal, IT, and Banking sectors ranging up to 4.85 percent.

Gold rebounds from four-month low

MUMBAI: Gold prices rebounded on Monday from the four-month low they reached last week. The October 2024 gold futures contract on the Multi Commodity Exchange closed at ₹69,792 per 10 grams.

On Friday, COMEX gold prices finished at $2,486 per troy ounce after testing the $2,500 mark.

Commodity market experts attribute the recovery to renewed recession fears triggered by higher jobless claims in the US, as well as ongoing tensions in the Middle East, which have been fueling gold’s rally. Additionally, speculation about a potential US Federal Reserve rate cut, following comments on ‘cooling inflation’ by Fed Chair Jerome Powell, has also contributed to the price surge.

Following a significant sell-off in the US stock market on Friday, experts anticipate that this rally in gold could continue for a few more sessions.

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, highlighted the factors driving gold prices today: “The renewed fear of a US recession due to higher jobless claims, coupled with the bloodbath in the US stock market on Friday, is likely to make gold a preferred haven asset. Investors are expected to shift their money from assets like bonds, currencies, and equities towards safer investments like gold and silver.”