- Indian equity benchmarks opened higher despite weak global cues.
- Global markets declined due to AI spending concerns and rising crude oil.
- Domestic investors track oil prices, global trends, and Q2 earnings.
Indian equity benchmarks opened higher on Friday, October 23, despite weakness across global markets as concerns over artificial intelligence (AI) spending and rising crude oil prices weighed on investor sentiment overseas.
The BSE Sensex opened trading around 73,700, climbing close to 450 points, while the NSE Nifty50 rang the opening bell above 22,700, rising 50 points, as of 9:15 AM.
Domestic investors will track movements in oil prices, global market cues and the ongoing September-quarter earnings season for further direction.
GIFT Nifty Signals Gap-Up Opening
GIFT Nifty indicated a positive start for Dalal Street, with futures trading at 22,864, up 155 points. The early indication pointed to gains in domestic benchmarks even as overseas markets remained under pressure.
At around 9:03 AM, the Sensex was trading at 73,706.38, up 456.99 points, or 0.62 per cent. The Nifty stood at 22,756.20, gaining 69.25 points, or 0.31 per cent.
Asian Markets Fall As AI Spending Concerns Hit Sentiment
Asian equities traded lower on Friday, tracking losses on Wall Street as investors reassessed the scale of spending on artificial intelligence infrastructure and its potential returns.
Japan’s Nikkei 225 declined 1.46 per cent, while South Korea’s Kospi fell 1.98 per cent.
The weakness reflected concerns about elevated investment commitments in the AI ecosystem and their implications for technology-sector valuations.
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Wall Street: Nasdaq Suffers Sharpest Fall Since June
US markets delivered a mixed performance on Thursday, with technology stocks facing significant selling pressure.
The Nasdaq Composite dropped 2.60 per cent to 26,008.86, marking its steepest single-session decline since June. The S&P 500 fell 1.21 per cent, while the Dow Jones Industrial Average edged up 0.02 per cent.
The divergent performance highlighted the pressure on technology shares as investors weighed AI infrastructure spending against the potential returns from those investments.
Crude Oil Prices Remain In Focus
Crude oil prices continued to influence market sentiment amid concerns over energy supplies. Brent crude futures for December delivery were quoted at $114.16 per barrel, up 0.94 per cent, although prices pared some gains during the Asian session.
The move came after the US invoked a Cold War-era defence law intended to incentivise domestic oil and gas production.
For India, higher crude prices remain a concern because they can increase the import bill and add to inflationary pressures, potentially affecting the rupee and the profitability of oil-sensitive sectors.
Gold And Silver Futures Decline
Precious metals also traded lower in the latest session. Gold futures declined 1.23 per cent, while silver futures fell 2.24 per cent.
Investors will continue to monitor movements in precious metals alongside changes in the dollar, bond yields and global risk appetite.
Expert View: Nifty Support At 22,550, Sensex At 73,000
Shrikant Chouhan, Head of Equity Research at Kotak Neo, said benchmark indices faced selling pressure at higher levels in the previous session. The Nifty ended 123 points lower, while the Sensex declined 460 points.
Sectoral performance was mixed, with the media index registering the steepest fall of 2.43 per cent. The India Tourism index was the strongest performer, rising 1 per cent.
From a technical perspective, Chouhan noted that the market recovered after finding support around 22,550 on the Nifty and 73,000 on the Sensex. Following the rebound, both indices traded within a relatively narrow range for the remainder of the session.
He identified 22,600 on the Nifty and 73,200 on the Sensex as immediate support levels, with the lower support zone at 22,550 and 73,000, respectively. As long as these levels hold, he said, a recovery could extend towards 22,800 on the Nifty and 73,700 on the Sensex.
A further advance could take the Nifty towards 23,000 and the Sensex towards 74,500, according to Chouhan’s assessment.
However, a break below the lower support levels could intensify selling pressure, potentially dragging the Nifty towards 22,450-22,350 and the Sensex towards 72,700-72,500.
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Q2 Earnings And Stock-Specific Triggers
The September-quarter earnings season remains a key driver for domestic equities, with company results and management commentary likely to influence individual stocks.
Investors will assess revenue growth, profitability and forward guidance to gauge the strength of corporate performance amid elevated energy costs and uncertainty in global markets.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
