GIFT Nifty falls nearly 200 pts, signals weak start for Sensex, Nifty as Nasdaq crashes, Asian markets plunge

Market Mastery

Webinar by Vishal Malkan

Find the weak links

in your portfolio by Vishal Malkan

Indian benchmark indices Sensex and Nifty are likely to open weak on Friday, with GIFT Nifty trading with sharp losses amid a global equity market rout triggered by fears of tighter artificial intelligence regulation following the US midterm elections.

The Nasdaq plunged more than 5 percent overnight, while Asian markets witnessed heavy selling, with South Korea's KOSPI triggering a circuit breaker. A rebound in crude oil prices could add to the pressure, although sustained foreign institutional buying may offer some support to Indian equities after six consecutive sessions of gains.

GIFT Nifty was trading at 24,415 around 8:10 am, down 185 points, or 0.75 percent. Indian equities rallied sharply on Thursday, with the Sensex surging 2,008.61 points, or 2.60 percent, to 79,310.01 and the Nifty jumping 576 points, or 2.40 percent, to 24,536.60. The indices extended their winning streak to six sessions, their longest since November 2025. Foreign institutional investors bought equities worth Rs 14,974 crore for a fifth consecutive session, while domestic institutions sold shares worth Rs 10,444 crore.

Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

Asian markets crash as KOSPI triggers circuit breaker

Asian equities plunged on Friday as fears of increased regulatory scrutiny of artificial intelligence companies and a slowdown in AI infrastructure investments triggered widespread selling in technology and semiconductor stocks.

South Korea's KOSPI crashed more than 8 percent, triggering a circuit breaker that temporarily halted trading. The index subsequently recovered some losses but remained down around 7 percent after trading resumed.

Japan's Nikkei plunged 6 percent, while Taiwan's benchmark index fell more than 8 percent, reflecting the severity of the selloff across Asia's technology-heavy markets.

The decline followed Wall Street's worst session since the tariff-related market rout in April 2025, with investors increasingly concerned that the Democrats' control of both chambers of the US Congress could lead to tighter regulation of artificial intelligence companies and delays in data centre investments.

Wall Street suffers worst selloff since April 2025; Nasdaq plunges 5.52%

US equities suffered their steepest single-day decline in more than a year on Thursday, with technology and semiconductor stocks leading the losses as investors reassessed the outlook for the artificial intelligence investment boom.

The Nasdaq Composite plunged 5.52 percent to 24,315, recording its biggest one-day decline in 19 months and confirming its entry into correction territory.

The S&P 500 tumbled 4.36 percent to 7,353.73, while the Dow Jones Industrial Average dropped 3.44 percent to 51,523.06.

The selloff wiped approximately $3 trillion off the market capitalisation of S&P 500 companies, while Wall Street's volatility gauge, the VIX, surged as investors rushed to reduce exposure to riskier assets. The Nasdaq's decline was particularly severe as investors sold high-flying semiconductor and technology stocks that had benefited from expectations of sustained AI-related spending.

Brent rebounds towards $100 but heads for biggest weekly fall since April 2020

Crude oil prices rose on Friday, extending their recovery from the sharp selloff earlier in the week, although Brent remained on course for its biggest weekly decline in more than six years. Brent crude for January settlement gained 1 percent to $99.27 a barrel, while West Texas Intermediate for December delivery rose 0.9 percent to $91.29 a barrel.

Despite Friday's rebound, Brent futures were down approximately 16 percent for the week, putting the global benchmark on track for its steepest weekly loss since April 2020.

The sharp weekly decline followed the Democrats' victory in the US midterm elections, which raised expectations that efforts to end the months-long Middle East conflict could accelerate. However, uncertainty over the prospects of a diplomatic resolution and the risk of renewed disruptions to energy supplies have kept crude prices volatile.