Indian benchmark indices Sensex and Nifty are likely to open sharply lower on Wednesday, with GIFT Nifty plunging 1 percent, signalling a weak start despite gains across Asian markets and Wall Street. A renewed rally in global technology stocks, driven by optimism around artificial intelligence, has lifted global sentiment. However, Indian equities could be weighed down by a fresh surge in crude oil prices, escalating geopolitical tensions and caution ahead of the US Federal Reserve's policy decision.
GIFT Nifty's November futures contract was trading at 22,588 around 8:00 am, down 224 points, or 0.98 percent, from yesterday’s close. Indian equities ended almost unchanged on Tuesday amid F&O expiry-related volatility, with the Sensex slipping 8.08 points, or 0.01 percent, to 73,598.67 and the Nifty declining 3.45 points, or 0.02 percent, to 22,749.75. Foreign institutional investors turned net buyers, purchasing equities worth Rs 4,240 crore, while domestic institutions sold shares worth Rs 1,250 crore.
Asian equities advanced on Wednesday as renewed enthusiasm for artificial intelligence-related stocks supported risk appetite ahead of earnings announcements from major technology companies. The recovery in Asian technology stocks followed overnight gains on Wall Street.
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MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.85 percent, while Japan's Nikkei rose 1.2 percent. South Korea's technology-heavy Kospi jumped more than 3 percent, leading gains across the region. US equity futures were largely unchanged as investors awaited the Federal Reserve's policy announcement later on Wednesday.