Stocks plunged while gold rallied again on Friday as overnight signals from overseas bourses signalled fresh fears of a recession in Western economies, and Wall Street opened down again as the week ended, indicating that the start of next week for Mumbai’s markets could deepen the gloom.
While the 30-share Sensex fell by a steep 328 points to 16141.7, the NSE’s 50-share dipped to 4845.7 points, down 98.5 points. Both indices fell by 2% in a week that saw an overall plunge of 5% in leading Indian stocks.
“For Friday, the global cues were negative with US markets closing down by over 3.5% on Thursday,” said Sanjeev Zarbade, vice-president at Kotak Securities.
Gold, considered a safe haven for those wondering what to do with their savings, reached yet another all-time high, with its biggest single-day jump ever. It climbed Rs1,310 per 10 grams. The yellow metal’s price touched Rs27,921 in the Multi Commodity Exchange’s October futures trade, up 2.8% on a single day.
On Friday the S&P 500 fell 0.2% in early trading in New York after rising as much as 1.2% while the Dow Jones Average index lost 0.4%.
The market breadth at the BSE was negative, with 773 stocks moving up, compared to 2,083 on the decline and 105 remaining unchanged. Of the 13 sectoral indices on the BSE, 12 closed in the red.