Western markets continued to slide as concerns around artificial intelligence overshadowed trading sentiment. Indexes in the US and Europe extended losses, triggering anxiety across global investors. However, Asian markets showed resilience on Wednesday morning, recovering early losses and moving into positive territory. Indian markets too are preparing for a mild upward opening.
Market participants are watching Nvidia’s quarterly results, due tonight, as they are expected to define the next phase of the AI-fuelled rally. The US government shutdown has ended, bringing back regular economic data flow. The labour market report, scheduled to be published this week, will be a significant indicator of the health of the US economy.
Another key factor troubling traders is whether the US Federal Reserve will cut interest rates in the second week of December during the FOMC meeting. The upcoming labour numbers will play a decisive role in this decision.
The Reserve Bank of India is also set to review its monetary policy in the first week of December. With inflation cooling sharply and growth remaining strong, analysts say the outcome is tough to predict. India’s GDP growth for the second quarter is expected to exceed 7.5%, beating earlier estimates. Meanwhile, crude oil prices are slipping, and gold too remains under pressure.
In derivatives trading at GIFT City, the Nifty closed at 25,951 on Tuesday night, before rising to 25,977 this morning and then dipping to 26,925. It later recovered. These moves suggest a positive opening for Indian markets.
European markets faced another harsh session as fears around an AI bubble continued to weigh heavily on sentiment. Major European indices slipped more than one and a half per cent, touching their lowest levels in a month. Analysts caution that until clarity emerges on the sustainability of AI-driven valuations, European equities will remain vulnerable.
Stocks in the United States continued their downward journey on Tuesday. Concerns around the sustainability of the AI boom dragged major indices deep into the red. Sharp volatility in cryptocurrency prices further unsettled traders.
The Dow Jones dropped nearly 2,200 points over four days, reflecting the severity of the sell-off. All members of the influential ‘Magnificent 7’—Nvidia, Amazon, Microsoft, Tesla, Meta, Apple and Alphabet—closed in the red. Shares of Palantir, Oracle and AMD also slumped. Analysts now warn that many AI-linked counters could fall another eight to ten per cent if sentiment does not stabilise soon.
Tonight’s Nvidia results are expected to set the tone for global equity markets. Investors will closely track whether the company has managed to maintain its high profit margins and whether the outlook for future growth remains intact. Any disappointment could spark a deeper correction.
Retail giant Walmart will announce its results on Thursday morning, offering a broader view of consumer health and the strength of the US economy.
Jobless claims for the week ending 18 October showed that 2,32,000 Americans applied for unemployment benefits. This figure excludes three earlier weeks for which data was not collected due to the government shutdown. The Labour Department will publish last month’s employment report later this week.
On Tuesday, the Dow Jones slipped 498.50 points (1.07%) to close at 46,091.74. The S&P 500 lost 55.09 points (0.83%) and settled at 6,617.32, while the Nasdaq Composite fell 275.23 points (1.21%) to close at 22,432.85. Early morning futures indicate mild weakness across all three US indices.
Asian markets opened lower but soon recovered. However, concerns persist given the US turbulence and simmering tensions between China and Japan. Japan’s Nikkei was up 0.62%, aided by expectations that the government may announce an economic stimulus after GDP contracted last quarter. Hong Kong and Chinese indices also traded higher.
Indian equities, which had risen for six straight days, retreated on Tuesday with all sectors closing in the red. The recent pattern—where headline indices climbed while the broader market slipped—reversed, indicating profit-taking across segments. Despite global pessimism, analysts and brokerages believe the impact of Western sell-offs will not fully spill over into domestic markets.
The Sensex fell 277.93 points (0.33%) to close at 84,673.02, while the Nifty dropped 103.40 points (0.40%) to end at 25,910.05. The Bank Nifty eased 63.45 points (0.11%) to close at 58,899.25. The Midcap 100 index declined by 0.59% and the Smallcap 100 index dropped 1.05%.
Market breadth remained weak. On the BSE, 1,401 stocks advanced while 2,810 declined. On the NSE, 958 shares rose against 2,157 that fell. As many as 88 stocks hit their 52-week highs, while 173 touched one-year lows.
Foreign investors sold shares worth ₹728.82 crore in the cash market, while domestic funds recorded strong net buying of ₹6,156.83 crore.
Technical analysts believe the Nifty’s support level has now shifted towards the 25,700–25,800 zone. If this fails, the next support sits at 25,500. A strong move above 26,000 is essential for targeting 26,300 and refreshing record highs. For today, support is seen at 25,880 and 25,840, while resistance awaits at 26,000 and 26,045.
Wonderla is set to begin operations in Tamil Nadu, with its new theme park near Chennai’s Old Mahabalipuram Road scheduled to open on 1 December. Spread across 64 acres with an investment of ₹611 crore, the park features 43 rides.
Power Grid Corporation has barred KEC International from participating in its tenders for nine months. The company said it will challenge the decision legally. Ongoing projects will not be affected.
Waaree Engineers confirmed that income tax authorities have conducted searches at its offices.
TCS has secured a five-year contract to modernise the cloud infrastructure and business systems of the UK’s National Health Service.
Infosys will commence its share buyback on 20 November, offering ₹1,800 per share for up to 10 crore shares. Shareholders can tender two shares for every eleven held.
Azad Engineering has entered into an agreement with Canada’s Pratt & Whitney to manufacture aircraft engine components
Gold continued to fluctuate as uncertainty persisted over whether the US Federal Reserve will cut interest rates. On Tuesday, prices moved between USD 4,030 and USD 4,080 before closing at USD 4,068.40 per ounce, up USD 21.90 from the previous session. This morning, gold briefly hit USD 4,079 before easing to USD 4,060.70. The holiday price stands at USD 4,070.
Silver closed at USD 50.65 per ounce and slipped slightly to USD 50.56 this morning. Platinum traded at USD 1,529, palladium at USD 1,375 and rhodium at USD 7,750.
Apart from tin, industrial metals continued their downward slide amid concerns over global economic growth. Copper dropped 1.39% to USD 10,649 per tonne, while aluminium fell 0.82% to USD 2,788.71. Prices of nickel, lead and zinc also declined.
Rubber prices climbed 0.58% internationally to 173 cents per kilogram. Cocoa rose marginally to USD 5,236.19 per tonne, while coffee dipped 0.47% and tea eased by 0.08%. Palm oil gained 1.42%.
The dollar index dipped marginally on Tuesday to close at 99.55 and edged up to 99.59 this morning. The euro slipped to USD 1.158 and the pound to USD 1.314. The Japanese yen weakened to 155.46 per dollar. The Chinese yuan held firm at 7.11 per dollar, while the Swiss franc stood at 0.80.
The Indian rupee strengthened by two paise to close at 88.61 against the dollar. US Treasury yields dipped, with the 10-year yield falling to 4.115%.
Crude oil prices firmed slightly ahead of the sanctions on Russian energy companies coming into effect this Saturday. Brent rose one per cent to USD 64.89 last night. This morning, Brent was trading at USD 64.54, WTI at USD 60.40 and UAE’s Murban crude at USD 66.42. Natural gas stood at USD 4.354.
Cryptocurrencies continued their wild swings. Bitcoin slipped to as low as USD 89,259 yesterday, wiping out all its 2025 gains, before rebounding above USD 92,300. Other digital assets recovered even faster. Ethereum, which plunged to USD 2,946, bounced back to USD 3,105. Solana too staged a swift recovery, climbing from USD 128.92 to USD 141.
