The Indian stock market faces a major decline influenced by the turmoil in global markets due to AI developments, while precious metal prices recover after a sharp drop.
The article discusses the significant impact of artificial intelligence (AI) on global stock markets, with substantial declines seen from the US to Indian exchanges. The Sensex and Nifty indices suffered losses, primarily driven by a sharp downturn in IT stocks, which saw declines of up to 6% for companies such as TCS, Infosys, Tech Mahindra, and Wipro. The US markets also reflected this trend, with the Nasdaq index dropping over 2% amid growing concerns regarding the volatility induced by AI developments.
As of Friday morning, the Sensex fell by 739.44 points or 0.89% to trade at 82,932.25, and Nifty dropped 241.45 points or 0.94% to reach 25,598.10. The article notes that out of the top 30 stocks on the BSE, 27 experienced significant declines in a broader trend of sell-offs in the IT sector, and even Reliance's shares saw a drop of 1.40%. This reflects the investor sentiment reacting to the uncertain landscape brought on by advancements in technology and its implications for the market.
In contrast, the prices of gold and silver experienced a recovery after previous falls. Earlier, gold had seen a massive decline of around ₹6,000, falling to ₹1.52 lakh, while silver plummeted by approximately ₹26,000 to reach ₹2.37 lakh. However, the market is witnessing a rebound in these precious metals, indicating that despite the turmoil in equity markets, investors are seeking safe-haven assets in gold and silver during periods of instability and uncertain market conditions.
