Global markets are signaling a grim start to the trading day, dominated by a continuing rout in technology stocks and a sharp fall in silver prices. In the US, major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed lower, extending recent losses as tech and software shares faced intense selling pressure. This downturn has rippled across Asia, with Japan's Nikkei 225 and South Korea's Kospi opening significantly down.
Commodity Volatility
Silver prices have experienced a dramatic decline, falling roughly 9% in India and a substantial 8.86% on COMEX, pushing prices toward $69.50 an ounce. This steep drop is attributed to a stronger US dollar, which has been bolstered by Federal Reserve signals suggesting a slower pace for potential interest rate cuts than markets had anticipated. Gold prices also saw a decline, marking their third consecutive day of losses.
Indian Market Cues
For Indian investors, the GIFT Nifty points to a negative opening for domestic indices. Thursday's trading session saw the NSE Nifty 50 close 0.52% lower and the BSE Sensex fall 0.60%. Foreign institutional investors were net sellers of shares worth ₹2,150.51 crore on February 5, 2025, while domestic institutional investors emerged as net buyers of ₹1,129.82 crore. Crude oil prices showed mixed movement, with WTI crude up slightly and Brent crude down.
Sectoral Performance
On Thursday, the restaurant sector stocks saw significant gains, rising 6%, followed by retail and QSR stocks. Conversely, space sector stocks experienced the sharpest declines.