Sensex, Nifty Open Lower Amid Global Sell-Off; Nifty IT Jumps 1% Despite US Tech Rout

Indian equity markets began Thursday’s session on a subdued note, mirroring steep overnight declines on Wall Street as investors pared exposure to richly valued technology and artificial intelligence (AI) stocks. 

Muted global cues dampened sentiment, triggering early selling across most sectors. The Nifty 50 opened at 25,772.70, down 45.85 points or 0.18 per cent, while the BSE Sensex slipped 41.32 points, or 0.05 per cent, to start at 84,518.33. 

Market participants remained cautious as global indices witnessed renewed selling pressure following the recent correction in US markets.

US Tech Sell-Off Spreads Globally, Weighs on Indian Markets: Experts

Experts said that the sell-off in US equities has now started impacting global markets, including India. The US markets extended their losing streak overnight, mainly due to profit booking in technology and AI-related stocks, which had earlier seen sharp rallies.

Ajay Bagga, Banking and Market expert, told ANI, “Global markets are seeing a tech stock risk off. US markets fell on Wednesday and Asian markets are following the US lead this morning. AI models and huge capex by AI hyperscalers is being questioned for sustainability and returns on investments. With a lack of revenue traction, AI models have come under a selling cloud. Indian markets have underperformed significantly, with a weak rupee, FPI outflows, weak FDI inflows and fragile sentiment around the punitive US tariffs impacting markets negatively.”

Broader Markets, Most Sectors Trade Lower; Nifty IT Outperforms

The weakness was also visible in the broader market indices. On the NSE, the Nifty 100 declined by 0.15 per cent, the Nifty Midcap 100 slipped 0.10 per cent, while the Nifty Smallcap 100 was down by 0.13 per cent, reflecting cautious sentiment across the broader market.

On the sectoral front, most indices traded in the red. Except for Nifty IT, which gained more than 1 per cent, all other sectors came under pressure. Nifty Auto lost more than 1 per cent, Nifty Pharma declined 0.66 per cent, Nifty FMCG slipped 0.11 per cent, Nifty Media fell 0.41 per cent, and Nifty Realty was down by 0.53 per cent.

Nifty 50 Holds Key Support at 25,700–25,800: Deeper Correction Possible

Ponmudi R, CEO of Enrich Money, stated, “Nifty 50 continues to trade within a rising channel structure. The 25,800-25,700 zone remains a critical near-term support and a decision-making area. As long as this base holds, the broader uptrend stays intact despite near-term volatility and global weakness. However, if selling intensifies, especially through long unwinding, a deeper corrective move toward the 25,500-25,400 zone cannot be ruled out.”

Global Markets Weak Ahead of Key European Central Bank Meets

Four European central banks meet on Thursday. As per experts, BOE (Bank of England) is expected to cut rates by a quarter point while the European Central Bank (ECB), Norges Bank and Riksbank are expected to hold rates steady.

Global markets remained weak as concerns over returns from AI capital expenditure, reports of funding pullbacks in data centre investments, and a shift towards defensive sectors have strengthened the risk-off mood.

Other Asian markets also opened weak, mirroring the subdued tone on Wall Street after several sessions of sustained selling.

(Inputs with ANI)