After 6 consecutive sessions of gains, Indian equity markets may face a weaker opening on Friday as investors respond to a sharp global selloff and reassess the outlook for AI regulation and US foreign policy following the Democratic victory in the US midterm elections.
The Nifty 50 and BSE Sensex recorded their strongest single-session gains in 7 months on Thursday, rising 2.4% and 2.6%, respectively. Lower crude oil prices and strong foreign fund inflows supported the rally. Foreign institutional investors purchased shares worth approximately ₹15,000 crore ($1.6 billion), marking their largest single-day net investment in nearly 6 years.
GIFT Nifty futures stood at 24,460 at 7:49 am IST on Friday, indicating a weaker opening for the Nifty 50, which closed at 24,536.6 on Thursday.
“The indicated decline is relatively contained compared with the severe global selloff, suggesting that lower crude and India’s limited direct exposure to the AI-hardware trade are providing some insulation,” said Hariselvan Radhakrishnan, founder and CEO of HST Wealth.
Analysts expect a volatile trading session, with possible consolidation and profit-booking after the benchmarks’ recent gains. On Thursday, markets rallied after Brent crude fell below $100 per barrel, as investors anticipated that the Democratic sweep of the US midterm elections could accelerate efforts to end the US-Iran conflict.
Global markets weigh on sentiment
Investor confidence weakened overnight following a sharp decline in US technology stocks. The Nasdaq fell 5.5%, while the Dow Jones and S&P 500 dropped 3.4% and 4.4%, respectively. Weak Qualcomm results and concerns about slower AI infrastructure spending contributed to the decline.
Asian markets also opened lower on Friday, with South Korea’s Kospi falling 8% and Japan’s Nikkei declining 5%.
Stocks to watch
- Bharti Airtel: Missed 2nd-quarter profit estimates as higher network operating costs offset subscriber growth and upgrades to costlier plans.
- Titan: Beat profit estimates, supported by a one-time gain and steady demand for higher-margin diamond-studded jewellery.
- LIC: Reported higher September-quarter profit, helped by growth in its group insurance business.
- ONGC: Posted stronger 2nd-quarter profit as higher crude prices during the period improved margins.
- Britannia: Exceeded September-quarter profit estimates on steady demand for packaged foods.
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