Indian Markets Face Lower Open Amid Global AI Sell-Off, Backed by Strong Q2 Earnings and FII Inflows

Indian stock markets are expected to open on a weak note, with the Nifty projected to lose around 170 points at the open. The expected downturn follows a heavy sell-off in global markets, driven primarily by a sharp correction in artificial intelligence and technology stocks.

Wall Street experienced its worst sell-off since 2020, with nearly $1.3 trillion in market capitalization wiped out in just 30 minutes. The Nasdaq plunged 5.52 percent, while the Nasdaq 100 fell over 6 percent and semiconductor shares dropped 12 percent. Major technology players, including Nvidia, TSMC, and Broadcom, faced significant downward pressure. This global sentiment triggered a ripple effect in Asian markets, notably in South Korea where the Kospi plunged by nearly 9 percent at the market open, prompting a 20-minute trading halt.

Despite the global correction, Indian stocks demonstrated notable resilience. American Depository Receipts (ADRs) of Infosys rose 4.6 percent, while Wipro ended flat. ADRs of HDFC Bank and ICICI Bank also closed higher. Furthermore, foreign portfolio investors (FPIs) turned heavy buyers, recording a single-day purchase of ₹14,974.68 crore, marking their largest single-day buying session in over six years. FII net shorts have simultaneously declined to 1.37 lakh contracts, the lowest level since February 2026.

The domestic resilience is further reinforced by largely better-than-expected Q2 financial performances from Indian companies. Oil and Natural Gas Corporation (ONGC) reported strong financial results for the quarter ended September 30, 2026. ONGC's consolidated revenue from operations rose 25.5 percent year-on-year to ₹1,98,263 crore, while consolidated profit after tax (PAT) increased 46.9 percent to ₹18,535 crore. On a standalone basis, ONGC's Q2 PAT rose 57.3 percent to ₹15,489 crore.

Several other major corporations also released their Q2 results. RateGain reported a consolidated net profit of 747.2 million rupees against 510.1 million rupees year-on-year, with revenue climbing to 7.45 billion rupees. Life Insurance Corporation of India (LICI) posted a standalone net profit of 120.7 billion rupees with revenue reaching 1.47 trillion rupees. Britannia Industries recorded a consolidated net profit of 7.21 billion rupees on a revenue of 55.98 billion rupees. Conversely, Glenmark reported a consolidated net profit of 2.64 billion rupees compared to 6.1 billion rupees in the previous corresponding period, alongside a decrease in quarterly revenue.

Additional companies reporting quarterly numbers and updates include Thermax, whose consolidated net profit stood at 1.15 billion rupees with revenue at 27.56 billion rupees. Meanwhile, corporate actions, major orders, and deal focus remain directed at companies including Adani Ports, Rajesh Power, Hexaware, HCC, STL Networks, KMEW, Ashoka Buildcon, and Lokesh Machines.

"The current market scenario highlights a clear divergence between global tech-driven volatility and domestic economic resilience. While international markets are reacting sharply to corrections in the artificial intelligence sector, Indian equities continue to draw strength from robust corporate earnings and record foreign institutional inflows. For businesses and investors, this underscores the importance of strong fundamentals and domestic liquidity buffers when navigating external macroeconomic shocks." — Dr. Shishir Gupta, Founder & CEO, StartupLanes