Short Description: Indian stock markets are set for a lower open, mirroring a global sell-off in tech stocks driven by AI disruption fears and weak US inflation sentiment.
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Indian stock market benchmarks, the Sensex and Nifty 50, are poised for a gap-down opening on Friday, taking cues from a broad-based global market slump. The sell-off was triggered overnight on Wall Street, where major indices like the Dow Jones and Nasdaq plunged over 1-2%, led by a sharp decline in heavyweight technology stocks. Investors are grappling with fears of AI disruption across sectors, causing significant volatility in key players from Nvidia to Apple. This negative sentiment has spilled over into Asian markets, with Japan’s Nikkei and South Korea’s Kospi trading deep in the red, setting a weak tone for the Indian equity session.
Back home, domestic indices had already closed lower on Thursday due to profit-booking and sector-wide selling, particularly in IT stocks. The Gift Nifty is trading at a steep discount, signaling the anticipated weak start. Market experts suggest attention is now shifting from the concluding Q3 earnings season to upcoming triggers, including key inflation data and foreign institutional investor (FII) flows. The recently revised India CPI inflation data for January showed a rise to 2.75%, which will be monitored for its implications on monetary policy and market direction.
Beyond equities, other asset classes are also experiencing turbulence. Crude oil prices are looking at consecutive weekly losses despite a slight uptick today, reflecting concerns over demand. Meanwhile, gold prices attempted to stabilize after a sharp 3.2% drop in the previous session. In significant domestic news, India’s Defence Acquisition Council approved proposals worth ₹3.60 lakh crore for critical military assets, including Rafale jets, which could impact related defense stocks. The overarching narrative remains one of caution as markets worldwide recalibrate amid AI anxieties and economic data watch.
Short Summary: Indian markets are tracking a global tech-led sell-off fueled by AI disruption concerns. With Wall Street and Asian indices down, domestic cues like inflation data and FII activity will be key. Volatility is expected to persist across equities, while crude oil faces weekly losses and gold seeks stability after a steep fall.
