Meltdown halts MF asset gains

Nifty, Sensex decline over 0.5%; oil slips to 4-year low; gold prices spike over 2%

- ABHISHEK KUMAR

Domestic indices slipped on Wednesday, mirroring a global equity sell-off triggered by the implementation of reciprocal tariffs by US President Donald Trump. This has reignited concerns of a looming global recession.

The Nifty 50 benchmark dipped 0.6 per cent, shedding 137 points to close at 22,399, while the Sensex fell 0.51 per cent, or 380 points, settling at 73,847. Market volatility spiked, with the India Vix climbing 5 per cent to 21.43.

US stocks rose early Wednesday after administration officials discounted recession calls on Wall Street, following the implementation of new US tariffs and China retaliation.

But volatility returned towards mid-day in New York and major indexes turned lower, with the Dow leading the way down, off almost 1 per cent.

Oil prices fell to a four-year low and traded below $60 a barrel on Wednesday, while several commodities, including coffee, tumbled.

Gold prices gained more than 2 per cent, supported by a decline in the dollar and safe-haven inflows amid escalating US-China trade tensions. Other markets saw steeper declines, with Japan's Nikkei plunging 4 per cent and European indices opening 3 per cent lower. In India, losses were moderated by the Reserve Bank of India's (RBI's) decision to cut interest rates for the second consecutive time. The apex bank has shifted its policy stance to "accommodative" from "neutral."