Indian Equity Markets Open Flat as Global Cues, AI Concerns Weigh on Sentiment

Indian Equity Markets Open Flat as Global Cues, AI Concerns Weigh on Sentiment​

Sensex, Nifty Trade With Mild Negative Bias in Early Session​

Mumbai, February 16: Indian equity markets begin the week on a subdued note on Monday, reflecting a cautious undertone amid weaker-than-expected earnings and sustained pressure on technology stocks linked to artificial intelligence concerns.

At 9:25 am, the BSE Sensex slips 22 points, or 0.02 percent, to trade at 83,604. The NSE Nifty declines 6 points, or 0.03 percent, to 25,464.

While benchmark indices remain largely flat, broader markets witness relatively sharper declines. The Nifty Midcap 100 falls 0.34 percent, and the Nifty Smallcap 100 drops 0.47 percent, indicating selling pressure beyond frontline stocks.

Sectoral Indices Mixed; IT and Media Under Pressure​

Sectoral performance remains mixed in early trade.

The Nifty IT index declines 0.55 percent, emerging as one of the key drags amid persistent concerns over AI-driven disruption. The media index also weakens, slipping 0.84 percent.

On the positive side, the Nifty Pharma index gains 0.93 percent, while the realty index edges higher by 0.55 percent, offering selective support to the broader market.

Key Technical Levels for Nifty and Bank Nifty​

Immediate support for the Nifty is placed in the 25,300 to 25,350 zone. On the upside, resistance is seen in the 26,600 to 26,650 range.

The Bank Nifty continues to display relative resilience, holding firmly above the key psychological level of 60,000. The critical support zone lies between 60,000 and 59,700, aligning with the 20-day exponential moving average. This level remains important for sustaining a bullish structure in the index.

Global Uncertainty and AI Concerns Shape Near-Term Outlook​

Domestic markets are increasingly sensitive to global developments following last week’s sharp correction, which was largely driven by weakness in technology stocks.

Persistent concerns around AI-led disruption and a reversal of earlier optimism sparked by the US–India interim trade framework have reinforced a broader risk-off sentiment. As a result, investor positioning has turned cautious.

Foreign institutional investor activity remains mixed in recent sessions as valuations come under reassessment. On February 13, FIIs were net sellers of equities worth Rs 7,395 crore. In contrast, domestic institutional investors provided support, emerging as net buyers to the tune of Rs 5,553 crore.

Steady DII inflows continue to lend a measure of domestic stability, even as external headwinds weigh on sentiment.

Asian and US Markets Provide Mixed Signals​

Asian markets trade mixed in early hours. China’s Shanghai index declines 1.26 percent, while Shenzhen falls 1.28 percent. South Korea’s Kospi slips 0.28 percent.

In contrast, Japan’s Nikkei advances 0.12 percent and Hong Kong’s Hang Seng Index rises 0.38 percent.

Overnight, US markets close largely in positive territory. The S&P 500 gains 0.05 percent and the Dow Jones adds 0.1 percent, while the Nasdaq eases 0.22 percent.

Investors Track Key Global Triggers​

In the near term, market sentiment remains fragile, with indices likely to consolidate until clearer signals emerge from global macroeconomic indicators.

Investors are closely monitoring upcoming global triggers, including the US Federal Reserve minutes, PCE inflation data, and PMI releases, which could shape the next directional move in equities.