Commodity price slump triggers investor caution

Risk-off sentiment among global investors hits equity markets, demand for gold rises

A slump in commodity prices has triggered risk-off sentiment among global investors, hitting equity markets and pushing up demand for safe-haven assets like gold.

Most Asian and European markets dropped on Friday, while the dollar gained against most emerging market currencies. The benchmark BSE Sensex lost 267 points or 0.9 per cent to end at 29,858.8; the Nifty 50 on the National Stock Exchange fell 74.6 points or 0.8 per cent to 9,285.3. The rupee fell 0.3 per cent to close at 64.37 against the dollar. Foreign investors sold shares worth Rs 364 crore. Commodity and oil stocks witnessed selling.