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Economic Times
3 days ago
- Business
- Economic Times
Why is the stock market down today? Sensex slumps over 700 pts, Nifty slips below 24,600; 5 key reasons behind the decline
Indian stock markets experienced a significant decline on Monday. Sensex and Nifty both traded lower. Selling pressure in metal and IT stocks contributed to the downturn. This weakness overshadowed India's strong GDP growth figures. Global cues remained mixed. Investors grew cautious before key U.S. macroeconomic data releases. Broader markets also faced pressure, with small-cap and mid-cap indices slipping. Tired of too many ads? Remove Ads Here are five key reasons behind today's market decline: 1. U.S. tariffs on metals threaten Indian exporters Tired of too many ads? Remove Ads 2. Weak global cues and trade tension jitters 3. Caution ahead of U.S. Fed commentary and jobs data Tired of too many ads? Remove Ads 4. Domestic selloff in key sectors 5. Russia-Ukraine conflict Indian equity benchmarks fell sharply on Monday, with the Sensex and Nifty trading lower amid selling pressure in metal and IT stocks. The weakness overshadowed India's strong GDP growth figures, as global cues remained mixed and investors turned cautious ahead of key U.S. macroeconomic around 9:42 am, the BSE Sensex had declined 704 points, or 0.86%, to 80,747, while the Nifty50 was down 168 points, or 0.68%, at 24, overall market capitalisation of BSE-listed companies dropped by Rs 2.06 lakh crore to Rs 442.13 lakh crore. The Nifty Metal index led the losses with a 1.4% decline, while the Nifty IT index fell 1.25%, weighed down by concerns over the U.S. economy and trade policy. Broader markets also remained under pressure, with small-cap and mid-cap indices slipping 0.3% economy had posted a strong 7.4% GDP growth in the January–March quarter, driven by manufacturing and construction. However, that optimism failed to lift sentiment amid external sentiment turned sour after U.S. President Donald Trump announced plans to double tariffs on imported steel and aluminium to 50%, effective June 4, 2025. This move is expected to adversely affect Indian metal exporters like Tata Steel Hindalco , and NALCO , which have significant exposure to the U.S. exported $4.56 billion worth of iron, steel, and aluminium products to the U.S. in FY2025. The tariff escalation, though not immediately impacting trade, has added uncertainty and is weighing on stocks in the metal sector."President Trump's 50% tariffs on steel and aluminium is a clear message that the tariff and trade scenario will continue to be uncertain and turbulent. This headwind will impact markets," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit and European markets showed signs of stress as investors grappled with the implications of escalating U.S.-China trade tensions. Japan's Nikkei dropped 1.4%, Hong Kong lost 2.5%, and U.S. futures also edged lower — with S&P 500 and Nasdaq futures down up to 0.5%.Markets are also uncertain about whether the U.S. will follow through with the tariff hike, creating additional volatility. While some regional indices like South Korea's gained slightly due to political optimism, the overall sentiment remained Read: India's top 10 priciest stocks in 2025: MRF to Elcid, see who tops the list Investors are bracing for a heavy week of macroeconomic updates from the U.S., especially the non-farm payrolls report and Federal Reserve commentary, which could influence the path of interest U.S. Senate is also set to consider a $3.8 trillion tax-and-spending bill, adding to concerns about the country's ballooning $36.2 trillion federal debt. As a result, long-term U.S. Treasury yields are nearing the critical 5% mark, which is adding to pressure on global equity Governor Christopher Waller on Monday indicated that rate cuts are still possible this year, but much will depend on incoming data. For now, markets are pricing in a 75% chance of a rate cut in September, though the Fed has not explicitly confirmed this home, selling was broad-based across sectors. Metal and IT stocks, which have global exposure, were among the hardest hit, reflecting external risks. Additionally, 10 of the 13 major sectoral indices on the NSE opened in the strong domestic data — with India's Q4 GDP growth at 7.4% — was not enough to support markets. Investors appear to be locking in gains after recent highs, as global uncertainties loom large over the near-term geopolitical concerns also weighed on investor sentiment after Ukraine launched drone attacks on five airbases deep inside Russian territory, reportedly destroying several aircraft. The incident comes just ahead of a scheduled peace summit in Turkey, raising fears of a possible escalation in the conflict if Russia intensification of the Russia-Ukraine war could disrupt global supply chains, especially in energy and commodities, leading to renewed volatility in global Read: Ola Electric, Kalyan Jewellers among 10 firms where promoters pledge increased in Q4
Time of India
3 days ago
- Business
- Time of India
Gold Price Prediction: How to trade ahead of Fed chief Jerome Powell speech
After an overall decline in the last week, Gold August futures contracts at MCX opened higher by Rs 243 or 0.25% at Rs 96,118/10 g after uncertainties around US President Donald Trump's tariffs linger. Supported by safe-haven buying, silver July futures contracts also opened slightly higher by Rs 164 or 0.17% at Rs 97,179/kg. On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold August futures contract settled at Rs 95,875 per 10 grams with a loss of 0.61%, and silver July futures contract settled at Rs 7,015 per kilogram with a loss of 0.83%. Gold and silver showed very high price volatility and plunged last week amid a rebound in the dollar index and the U.S. President Trump's statements on China, trade tariffs and the Russia-Ukraine war. The dollar index rebounded from 1-month lows last week and pushed gold and silver prices lower. Today, the US Dollar Index, DXY, was hovering near the 99.31 mark, falling 0.02 or 0.02%. Live Events U.S. President Trump said in his tweet that China is violating trade agreements and also issued a threat to the Russian President for their aggression against Ukraine. The Federal court order for blocking Trump's tariff plan was also stayed by a 9-judge bench, which also pressured precious metal prices. 'Investors and traders are also looking cautious amid global uncertainties and ahead of the U.S. Fed Chairman's speech on Monday,' said Manoj Kumar Jain of Prithvifinmart Commodity Research. 'We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and ahead of the U.S. Fed Chairman's speech; gold prices could hold its support level of $3,180 per troy ounce and silver prices could also hold $31.80 per troy ounce levels on a weekly closing basis this week,' he added. How to trade gold? Manoj Kumar Jain suggested the following ranges for gold and silver on MCX: Gold has support at Rs 95,440-95,100 and resistance at Rs 96,250-96,660 Silver has support at Rs 96,350-95,500 and resistance at Rs 97,800-98,450 Jain cautioned that he expects very high price volatility in gold and silver in today's session ahead of the Fed Chairman's speech. Gold rates in physical markets Gold Price today in Delhi Standard gold (22 carat) prices in Delhi stand at Rs 57,112/8 grams while pure gold (24 carat) prices stand at Rs 60,840/8 grams. Gold Price today in Mumbai Standard gold (22 carat) prices in Mumbai stand at Rs 57,880/8 grams while pure gold (24 carat) prices stand at Rs 61,728/8 grams. Gold Price today in Chennai Standard gold (22 carat) prices in Chennai stand at Rs 57,032/8 grams while pure gold (24 carat) prices stand at Rs 60,800/8 grams. Gold Price today in Hyderabad Standard gold (22 carat) prices in Hyderabad stand at Rs 56,816/8 grams while pure gold (24 carat) prices stand at Rs 60,608/8 grams. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
3 days ago
- Business
- Economic Times
Gold Price Prediction: How to trade ahead of Fed chief Jerome Powell speech
After an overall decline in the last week, Gold August futures contracts at MCX opened higher by Rs 243 or 0.25% at Rs 96,118/10 g after uncertainties around US President Donald Trump's tariffs linger. ADVERTISEMENT Supported by safe-haven buying, silver July futures contracts also opened slightly higher by Rs 164 or 0.17% at Rs 97,179/kg. On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold August futures contract settled at Rs 95,875 per 10 grams with a loss of 0.61%, and silver July futures contract settled at Rs 7,015 per kilogram with a loss of 0.83%. Gold and silver showed very high price volatility and plunged last week amid a rebound in the dollar index and the U.S. President Trump's statements on China, trade tariffs and the Russia-Ukraine war. The dollar index rebounded from 1-month lows last week and pushed gold and silver prices the US Dollar Index, DXY, was hovering near the 99.31 mark, falling 0.02 or 0.02%.U.S. President Trump said in his tweet that China is violating trade agreements and also issued a threat to the Russian President for their aggression against Ukraine. The Federal court order for blocking Trump's tariff plan was also stayed by a 9-judge bench, which also pressured precious metal prices. ADVERTISEMENT 'Investors and traders are also looking cautious amid global uncertainties and ahead of the U.S. Fed Chairman's speech on Monday,' said Manoj Kumar Jain of Prithvifinmart Commodity Research.'We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and ahead of the U.S. Fed Chairman's speech; gold prices could hold its support level of $3,180 per troy ounce and silver prices could also hold $31.80 per troy ounce levels on a weekly closing basis this week,' he added. ADVERTISEMENT Manoj Kumar Jain suggested the following ranges for gold and silver on MCX: ADVERTISEMENT Gold has support at Rs 95,440-95,100 and resistance at Rs 96,250-96,660 Silver has support at Rs 96,350-95,500 and resistance at Rs 97,800-98,450 Jain cautioned that he expects very high price volatility in gold and silver in today's session ahead of the Fed Chairman's speech. Standard gold (22 carat) prices in Delhi stand at Rs 57,112/8 grams while pure gold (24 carat) prices stand at Rs 60,840/8 grams. ADVERTISEMENT Standard gold (22 carat) prices in Mumbai stand at Rs 57,880/8 grams while pure gold (24 carat) prices stand at Rs 61,728/8 gold (22 carat) prices in Chennai stand at Rs 57,032/8 grams while pure gold (24 carat) prices stand at Rs 60,800/8 gold (22 carat) prices in Hyderabad stand at Rs 56,816/8 grams while pure gold (24 carat) prices stand at Rs 60,608/8 grams. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
4 days ago
- Business
- Time of India
Why is the stock market down today? Sensex slumps over 700 pts, Nifty slips below 24,600; 5 key reasons behind the decline
Here are five key reasons behind today's market decline: 1. U.S. tariffs on metals threaten Indian exporters Live Events 2. Weak global cues and trade tension jitters 3. Caution ahead of U.S. Fed commentary and jobs data 4. Domestic selloff in key sectors 5. Russia-Ukraine conflict (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian equity benchmarks fell sharply on Monday, with the Sensex and Nifty trading lower amid selling pressure in metal and IT stocks. The weakness overshadowed India's strong GDP growth figures, as global cues remained mixed and investors turned cautious ahead of key U.S. macroeconomic around 9:42 am, the BSE Sensex had declined 704 points, or 0.86%, to 80,747, while the Nifty50 was down 168 points, or 0.68%, at 24, overall market capitalisation of BSE-listed companies dropped by Rs 2.06 lakh crore to Rs 442.13 lakh crore. The Nifty Metal index led the losses with a 1.4% decline, while the Nifty IT index fell 1.25%, weighed down by concerns over the U.S. economy and trade policy. Broader markets also remained under pressure, with small-cap and mid-cap indices slipping 0.3% economy had posted a strong 7.4% GDP growth in the January–March quarter, driven by manufacturing and construction. However, that optimism failed to lift sentiment amid external sentiment turned sour after U.S. President Donald Trump announced plans to double tariffs on imported steel and aluminium to 50%, effective June 4, 2025. This move is expected to adversely affect Indian metal exporters like Tata Steel Hindalco , and NALCO , which have significant exposure to the U.S. exported $4.56 billion worth of iron, steel, and aluminium products to the U.S. in FY2025. The tariff escalation, though not immediately impacting trade, has added uncertainty and is weighing on stocks in the metal sector."President Trump's 50% tariffs on steel and aluminium is a clear message that the tariff and trade scenario will continue to be uncertain and turbulent. This headwind will impact markets," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit and European markets showed signs of stress as investors grappled with the implications of escalating U.S.-China trade tensions. Japan's Nikkei dropped 1.4%, Hong Kong lost 2.5%, and U.S. futures also edged lower — with S&P 500 and Nasdaq futures down up to 0.5%.Markets are also uncertain about whether the U.S. will follow through with the tariff hike, creating additional volatility. While some regional indices like South Korea's gained slightly due to political optimism, the overall sentiment remained Read: India's top 10 priciest stocks in 2025: MRF to Elcid, see who tops the list Investors are bracing for a heavy week of macroeconomic updates from the U.S., especially the non-farm payrolls report and Federal Reserve commentary, which could influence the path of interest U.S. Senate is also set to consider a $3.8 trillion tax-and-spending bill, adding to concerns about the country's ballooning $36.2 trillion federal debt. As a result, long-term U.S. Treasury yields are nearing the critical 5% mark, which is adding to pressure on global equity Governor Christopher Waller on Monday indicated that rate cuts are still possible this year, but much will depend on incoming data. For now, markets are pricing in a 75% chance of a rate cut in September, though the Fed has not explicitly confirmed this home, selling was broad-based across sectors. Metal and IT stocks, which have global exposure, were among the hardest hit, reflecting external risks. Additionally, 10 of the 13 major sectoral indices on the NSE opened in the strong domestic data — with India's Q4 GDP growth at 7.4% — was not enough to support markets. Investors appear to be locking in gains after recent highs, as global uncertainties loom large over the near-term geopolitical concerns also weighed on investor sentiment after Ukraine launched drone attacks on five airbases deep inside Russian territory, reportedly destroying several aircraft. The incident comes just ahead of a scheduled peace summit in Turkey, raising fears of a possible escalation in the conflict if Russia intensification of the Russia-Ukraine war could disrupt global supply chains, especially in energy and commodities, leading to renewed volatility in global Read: Ola Electric, Kalyan Jewellers among 10 firms where promoters pledge increased in Q4
Economic Times
6 days ago
- Business
- Economic Times
Gold Price Prediction: Yellow metal slips by Rs 1,900 in 4 days. Is more downside ahead?
Gold prices have come under pressure due to profit booking, dropping by Rs 1,900 over the last four trading sessions. On Wednesday, gold and silver closed mixed in the domestic market but ended lower internationally. Domestically, Gold June futures rose 0.14% to Rs 95,278 per 10 grams, while Silver July futures fell 0.23% to Rs 97,255 per kilogram. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads How to trade gold? Gold has support at Rs 94,660-94,200 and resistance at Rs 95,700-96,100 Silver has support at Rs 96,650-96,000 and resistance at Rs 98,000-98,850 Tired of too many ads? Remove Ads Gold rates in physical markets Gold Price today in Delhi Gold Price today in Mumbai Gold Price today in Chennai Gold Price today in Hyderabad Amid fading chances of a rate cut ahead and after the US Court's ruling to remove the reciprocal tariffs, Gold prices have started to witness profit booking, falling by Rs 1,900 in just the last 4 trading sessions. Gold June futures contracts at MCX fell by Rs 778 or 0.81% on Thursday to their day's low of Rs 94,500/10 silver July futures contracts were trading higher at Rs 97,647/kg, up by Rs 392 or 0.4% around 10:15 Wednesday, gold and silver settled on a mixed note in the domestic market, while settling on a weaker note in the international markets. Gold June futures contract settled at Rs 95,278 per 10 grams with a gain of 0.14% while silver July futures contract settled at Rs 97,255 per kilogram with a loss of 0.23%.Gold and silver extended their fall in the international markets amid easing safe-haven buying due to strength in the dollar index and U.S. equity markets. The U.S. Fed shows confidence in the U.S. economy in its meeting minutes released on Wednesday. The U.S. Fed Chairman said that economic activity and job markets remain strong, but showed concern about inflation, and he denied for any immediate policy decline in the precious metals also followed a US Court of International Trade ruling that President Trump exceeded his authority with reciprocal tariffs, ordering their permanent removal. The administration is expected to U.S. President said on Wednesday, for another round of talks with Iran on the nuclear deal and also told the Israeli Prime Minister to hold off strike on US gold exports to Switzerland rose sharply in April after tariffs on precious metals were lifted, affecting global gold trade dynamics.'Fading chances of interest rate cuts and easing tensions in the Middle East could push gold and silver prices lower,' said Manoj Kumar Jain of Prithvifinmart Commodity Research.'We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and ahead of the key U.S. economic data; gold prices could hold its support level of $3,200 per troy ounce and silver prices could also hold $31.80 per troy ounce levels on a weekly closing basis,' he the US Dollar Index , DXY, was hovering near the 100.25 mark, gaining 0.38 or 0.38%.Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:Jain suggests selling gold below Rs 95,000 with a stop loss of Rs 95,550 for a target of Rs 94, gold (22 carat) prices in Delhi stand at Rs 58,120/8 grams while pure gold (24 carat) prices stand at Rs 61,936/8 gold (22 carat) prices in Mumbai stand at Rs 57,240/8 grams while pure gold (24 carat) prices stand at Rs 61,048/8 gold (22 carat) prices in Chennai stand at Rs 56,752/8 grams while pure gold (24 carat) prices stand at Rs 60,520/8 gold (22 carat) prices in Hyderabad stand at Rs 56,920/8 grams while pure gold (24 carat) prices stand at Rs 60,712/8 grams.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
