The Indian stock indices were relatively steady on Friday, indicating continued momentum for the seventh session of the winning streak. Sustained foreign inflows and a lack of AI exposure cushioned the blow of the massive tech-stock sell-off on Wall Street and the Asian markets.
The Sensex and Nifty had risen 2.4 per cent and 2.6 per cent, respectively, on Thursday after Brent crude fell to around $93 per barrel.
The Nifty 50 gained 0.17 per cent to 24,578 on Friday, though it continues to hover around the 24,500 mark. The BSE Sensex started low at 79,016.05 before gaining 0.81 per cent to hit a high of 79,938.77.
Meanwhile, Wall Street is in its steepest decline since April 2025, as investors weighed the possibility of AI-related policies taking a step back as Democrats take control of the Senate. Fears of tougher AI regulations weighed on chip stocks. Shares of AI-related companies crashed.
The US market sentiment hit the Asian markets, with Japan's Nikkei 225 and South Korea’s Kospi shedding around 6 to 7 per cent each.
Brent crude climbed back into the $100 territory after the oil industry continued to deal with supply disruption through the Strait of Hormuz. However, foreign inflows of around $1.6 billion in the last trading session acted as a buffer.
Tech stocks such as Infosys, TCS and HCL Tech were in focus on the BSE Sensex as investor sentiment for India's alternative AI solutions market climbed higher. Since Indian IT firms focus primarily on enterprise IT services rather than heavy AI infrastructure hardware, as in the case of US companies, Indian tech stocks are attracting renewed interest as an anti-AI destination.
Mahindra & Mahindra led the rally for both the markets, buoyed by strong Q2 results that beat brokerage estimates. Brokerages expect SUV launches, electric vehicle demand, and light commercial vehicles to grow, with Citi, Jefferies, Kotak and Goldman Sachs maintaining a BUY rating on the stock.
Bharti Airtel shares traded green in both markets, following a mixed Q2 performance. Citi has a BUY rating on the stock, with a positive outlook. However, brokerages flagged higher operating costs and lower-than-expected net profit.
