Stock Market Today: Gold and silver prices crashed sharply, dragging ETFs, metal stocks and MCX shares lower amid rising volatility and weak global cues.
Trading screens show sharp losses in gold, silver and metal stocks as markets react to a sudden commodity sell-off (Photo: File)
Stock Market Today: A general correction in commodities and equities shook the Indian markets, breaking the calm before the Union Budget. Gold ETFs dropped by as much as 16% as gold prices plummeted on the MCX. Silver performed even poorer, dragging metal stocks down with a correction in the metal space soon turned into a market-wide sentiment change.
As per NSE guidelines, the pre-open session will begin at 9:00 am and close at 9:08 am while regular trading will run from 9:15 am to 3:30 pm.
The benchmark indices opened with caution in anticipation of the Union Budget where the Nifty 50 opened at 25,333.75, up 13.10 points or 0.05% and the BSE Sensex opened at 82,445.97, higher by 176.19 points or 0.21%. The markets continued to remain range-bound as investors awaited the Budget 2026 comments from Finance Minister Nirmala Sitharaman, scheduled at 11 am in Parliament.
The metal industry was most affected with the Nifty Metal index opened heavily in the red and fell by more than 4%, continuing the decline from the previous trading sessions. Hindustan Copper fell by more than 14%, Hindustan Zinc by approximately 11%, National Aluminium Company by nearly 10% and Vedanta by a little over 5%. The overall market sell-off indicated nervousness among investors, as silver prices tanked heavily.
Gold prices saw a sudden turn around and fell by almost 9% in a single trading day. MCX gold futures fell by around Rs 9,000 per 10 grams, closing at around Rs 1.43 lakh and this fall in gold prices resulted in the elimination of a major portion of the gains made earlier in the week, as gold had reached record highs.
The stocks of Multi Commodity Exchange saw intense selling as the volumes surged and fear dominated the trading floor. MCX fell the most in a single day in five years, going below 20% from its 52-week high and this indicates a decline in near-term revenue as the prices of gold and silver collapsed.
The overall market had a shaky start and could not calm down and opening a notch higher, the initial gains dissipated quickly. Mid and smallcaps were the worst affected, plummeting as much as 1.25%. On the sectoral front, metals took the lead in the downfall with PSU banks, IT and realty following closely. Pharma and private banks could provide only a meager cushion.
Market breadth continued to remain firmly in the negative zone on the NSE, more than 1,400 stocks closed lower, while around 1,000 stocks closed higher. Around 38 stocks touched a new 52-week low and volatility increased as the India VIX climbed by 4% while foreign investors turned net buyers, although domestic institutions took profits.
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On Budget Day, Sumeet Bagadia, the Executive Director of Choice Broking, identified a set of stock recommendations to watch out for. These stocks include Eicher Motors, Hindustan Unilever, State Bank of India, Ujjivan Small Finance Bank, Asahi India Glass, Star Health and City Union Bank, as per Mint.
