Indian Equities Rise as Global Tech Stocks Slide

Synopsis

Indian indices rose on Thursday and were marginally higher on Friday despite a technology-driven sell-off on Wall Street and Asian markets. Foreign investors came in in great numbers on November 5, India's biggest day in seven months as the Sensex and Nifty advanced by 2.60 per cent and 2.40 per cent respectively. The shift away from stocks with AI in their names has seen global capital flow into India's large-cap indices while mid- and small-cap lagged, analysts said.

On Thursday, the Sensex rose 2,008.61 points, or 2.60 per cent, to settle at 79,310.01, while the Nifty gained 576 points, or 2.40 per cent, to end at 24,536.60. The indices have rallied for six straight sessions and the move on Thursday marked the biggest one-day gain in seven months. Over this period the Sensex has increased by 6,063.98 points, or 8.27 per cent.

Friday's early trading period saw gains. The Sensex traded 443.87 points higher at 79,760.10 and the Nifty climbed 81 points to 24,612.85. The numbers that you have provided (Nifty 24,662.80, Sensex 79,917.60) match these levels, but couldn't find a published statement of closing reports.

A sell-off elsewhere

It was a stark contrast to other markets. Wall Street's heaviest day since April 2025, as investors grow concerned about AI spending and regulatory scrutiny following the US midterm elections. A 5.6 per cent drop in the Nasdaq was attributed to the slowdown in data-centre spending, while experts said the quick slowdown in the AI trade would be good for India.

Why India held up

In the coverage, there are the following three factors that keep coming up. The first one is the foreign money. Foreign institutional investors have acquired shares valued at ₹35,781 crore in the past five sessions. Second, crude: Brent's price dropped below $100 a barrel on Thursday. Third, earnings: "Better than expected earnings growth provides a fundamental underpinning for the rally and is being driven by large caps which were attractively valued," analysts said.

The boundaries of the rally

Breadth was narrow. The Nifty Mid cap 100 index closed some 1.1 per cent down and the Nifty Small cap 100 was 1.75 per cent lower at the start of Friday. Domestic institutions sold a net of ₹10,444 crore on Thursday. rolling

The overall market position must be provided some context. The Indian benchmarks are essentially flat in 2026, or down approximately 6 per cent, according to your notes; I didn't have a copy with me to check this number and have not included it.

Outlook

The outperformance of India will depend on three factors: the trajectory of the crude, the foreign buyer's staying power, and whether the global tech sell-off continues. A fall to below $100 helped on Thursday but it was trading around 2.35 per cent higher at $100.6 on Friday.