Key Highlights

• Higher open: Sensex opened at 72,965.80 (+183.91); Nifty at 22,671.30 (+48.60).
• Global rout: Kospi fell over 7% and Nikkei over 4%; Nasdaq dropped 1.88% overnight.
• The trigger: US inflation rose to 3.7% in September, raising fears of another Fed rate hike.
• The India angle: Analysts say a correction in AI stocks could slow foreign selling in India.
• Flows: FIIs sold ₹1,857 crore on Wednesday; DIIs bought ₹2,670 crore.

Indian markets opened higher on Thursday, defying a sharp sell-off across global technology stocks. Sensex opened at 72,965.80, up 183.91 points, and Nifty at 22,671.30, up 48.60 points.

IT, FMCG, auto and private bank stocks led, rising up to nearly 2%. Metals were the biggest laggard, down 1%, while PSU banks, consumer durables, pharma and healthcare also slipped.

A Global Tech Rout

The pressure came from the US, where inflation rose to 3.7% in September from 3.4% in August, raising the chance of another rate hike by the Federal Reserve in October. That triggered heavy selling in US tech, with the Nasdaq falling 1.88%. The fear spread to Asia: Japan’s Nikkei fell over 4% and South Korea’s Kospi plunged more than 7%.

Why It Matters: India’s Unusual Advantage

Here’s the twist. Analysts see the global sell-off in AI stocks as potentially positive for India.

Over the past year, foreign investors have pulled heavily out of Indian equities, in part to chase AI-linked stocks in markets like the US, Korea and Japan. India has relatively few large AI-hardware companies, which kept it out of that rally, but also out of today’s crash. If AI stocks keep correcting, that money may look for other homes, and India’s growth story could become attractive again.

“From the Indian market perspective, the correction in AI stocks is a positive,” analysts said, adding that FIIs who have been selling Indian stocks to buy AI stocks may halt that trend.

Today’s Numbers

Domestic institutions continue to absorb foreign selling, while a nearly 2% fall in crude, amid concerns over the Strait of Hormuz and US steps to ease shipping costs, offered further relief.

What to Watch

• Whether the Fed hikes rates in October
• Whether FII selling slows in the coming sessions
• Crude prices and Middle East developments

The Bottom Line

While Asia’s tech-heavy markets took a beating, India held firm. If the AI trade cools, the money that left India for AI stocks could start finding its way back.

With inputs from IANS.