GIFT Nifty down, signals muted start for Sensex, Nifty; Asian markets plunge on AI spending worries, oil surge

The weak global cues come after Indian equities staged a strong rebound in the previous session. GIFT Nifty was trading at 23,005 around 7:55 am, down 38 points, or 0.16 percent. Indian equities rallied on Thursday, with the Sensex jumping 905.01 points, or 1.24 percent, to 74,151.04 and the Nifty gaining 237.90 points, or 1.05 percent, to 22,936.75. Foreign institutional investors snapped their two-day buying streak, selling equities worth Rs 943 crore, while domestic institutions bought shares worth Rs 1,924 crore for a second consecutive session.

Asian equities fell sharply on Friday as another round of disappointing technology earnings intensified concerns over the enormous investments being made in artificial intelligence, prompting investors to move away from AI-related stocks. South Korea's Kospi plunged nearly 5 percent, dragged down by losses in semiconductor heavyweights Samsung Electronics and SK Hynix. Japan's Nikkei declined 2.7 percent; the Shanghai Composite slipped 0.8 percent; while Taiwanese equities also came under heavy selling pressure.

The broader MSCI Asia Pacific Index fell 1.8 percent, reflecting widespread weakness across regional markets. Hong Kong's Hang Seng bucked the trend with a modest gain of 0.2 percent. US equity futures also declined, with S&P 500 futures falling 1.1 percent, indicating continued pressure on global stocks. US equities ended lower on Thursday as investors reassessed the scale of spending on artificial intelligence by major technology companies, while fresh inflation data reinforced concerns over persistent price pressures.

The Nasdaq Composite dropped 365.13 points, or 1.37 percent, to 26,184.72, leading losses among the major indices. The S&P 500 declined 23.59 points, or 0.30 percent, to 7,720.39, while the Dow Jones Industrial Average fell 132.54 points, or 0.25 percent, to 52,342.56. The selloff followed the Federal Reserve's decision on Wednesday to leave interest rates unchanged. Policymakers acknowledged that inflation remained elevated, while economic data released on Thursday showed further acceleration in price pressures.

Crude oil prices surged on Friday amid signs that the United States could resume military strikes against Iran, raising concerns over fresh disruptions to energy supplies from the Middle East. Brent crude for December settlement jumped 2.4 percent to $117.61 a barrel, while West Texas Intermediate for December delivery gained 2.7 percent to $104.77 a barrel. Ponmudi R, CEO of Enrich Money, expects Indian equities to remain under pressure as escalating geopolitical risks, elevated crude oil prices and weak global cues weigh on investor sentiment.

He said the ongoing domestic earnings season is likely to drive stock-specific activity, even as the broader market remains vulnerable to external developments.