Indian Stock Markets Rally Despite Global Weakness

Indian equity markets witnessed a strong rally despite negative signals from global markets. Interestingly, the shift in investor sentiment towards an ‘anti-AI’ theme appears to be supporting domestic stocks. Investors who had earlier stayed away from Indian equities over concerns about the country's limited exposure to artificial intelligence investments are now reportedly turning towards Indian markets amid global worries over AI-related regulations. The Sensex gained nearly 1,100 points, while the Nifty moved close to the 24,800 mark. The Sensex opened at 79,413.66, compared with its previous close of 79,310.01, and extended its gains during the session. Around 2 pm, it was trading 1,095 points higher at 80,405, while the Nifty was up 259 points at 24,795.

Among the Sensex constituents, Mahindra & Mahindra, ICICI Bank, Titan, HDFC Bank and Sun Pharma were among the major gainers. Power Grid Corporation, BEL, IndiGo, Bajaj Finance and Asian Paints were trading in the red. Market analysts attributed the rally to three key factors: concerns over tighter AI regulations following the Democrats' victory in the US midterm elections, strong foreign institutional investor (FII) inflows and better-than-expected corporate earnings. Foreign investors reportedly purchased shares worth ₹14,975 crore on Thursday, marking their highest single-day investment in six years. Attractive valuations of large-cap stocks following their recent decline have also encouraged buying activity.