Sensex and Nifty Poised for Rally as AI Boom Powers Wall Street and Global Equities
GIFT Nifty indicates a positive start for Indian equities, suggesting that both the Sensex and Nifty 50 are likely to open higher on Friday. The bullish outlook follows a significant rally in global markets, driven by optimism surrounding artificial intelligence (AI). GIFT Nifty was trading at 24,430 on Friday morning, up 67 points or 0.28 percent, signaling potential gains above the previous close of 24,317 for the Nifty 50.On Thursday, the Sensex closed modestly higher by 274 points (0.35%) at 77,928. The overall gain was balanced as strong performance in information technology stocks offset weaknesses seen in realty, healthcare, capital goods, and select heavyweight counters.
Asian Markets Surge on AI Optimism After Tech Giants' Rally
Asian equities saw a sharp rebound after stronger-than-expected earnings reports and optimistic forecasts from major technology players. Microsoft and Amazon’s reports successfully revived investor confidence in the burgeoning AI trade and alleviated concerns regarding heavy capital expenditure requirements.The rally was fueled by significant gains in AI-linked technology shares across global markets, improving overall risk appetite. Japan's Nikkei surged 5 percent, while South Korea's Kospi jumped a record 14 percent after previous steep losses. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 3 percent.
US Markets Rally on Robust Tech Spending Confirmation
US stock markets ended sharply higher on Thursday following upbeat commentary and strong earnings from tech behemoths. Microsoft's outlook and Amazon’s reassurances confirmed that spending dedicated to AI infrastructure continues to generate robust growth in the market.The Nasdaq Composite surged 2.78 percent, while the S&P 500 climbed 1.66 percent. The Dow Jones Industrial Average also managed a strong gain of 1.19 percent, reflecting broad-based tech sector strength.
Oil Edges Higher Amid Persisting Middle East Tensions
Crude oil prices continued to creep upward on Friday as geopolitical tensions in the Middle East remain heightened. Brent crude futures rose 0.4 percent to $89.38 per barrel. US West Texas Intermediate (WTI) crude gained 0.3 percent, trading at $83.84 per barrel.Market sentiment is carefully monitoring developments following a drone strike on gas vessels located at Egypt's Mediterranean port of Damietta. This event raised concerns that the conflict could escalate to other vital shipping routes through the Suez Canal.
Institutional Flows Show FII Buying Streak While DII Turn Sellers
Foreign institutional investors (FIIs) extended their buying streak for a third consecutive session on Thursday, signaling sustained international confidence in domestic markets. FIIs purchased Indian equities worth Rs 3,623 crore during the period.In contrast, Domestic institutional investors (DIIs) reversed their trend and turned net sellers after five consecutive days of net buying. DIIs offloaded equities worth Rs 1,864 crore. Investor attention is expected to remain focused on the ongoing fiscal first quarter earnings season and international developments.
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