Global Markets Today, November 12, 2026: India May Rise At Open As AI Concerns Trigger Rotation Towards Traditional Bets; Crude Oil Slips

Mumbai, November 12: Indian equity benchmarks Sensex and Nifty could open on a positive note on Thursday, November 12, potentially bucking weakness across parts of global markets as investors rotate away from expensive technology and artificial intelligence (AI)-linked stocks towards traditional sectors. While mixed Asian cues and weakness in US equity futures reflect lingering concerns over AI valuations and spending, the shift in global investor preferences could work in favour of India’s relatively diversified, traditional-sector-heavy market. Falling crude oil prices could provide an additional cushion to domestic sentiment.

Asian markets mixed as technology concerns weigh

Asian markets were trading mixed in early deals on Thursday. Japan’s Nikkei 225 gained 0.8%, while South Korea’s Kospi advanced 1% and Taiwan’s benchmark index rose 0.2%. However, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.03%, reflecting lingering caution.

The weakness in parts of the region comes amid concerns over elevated AI valuations and the sustainability of massive investments in the technology. However, any resulting rotation away from technology-heavy markets and towards traditional businesses could create opportunities for Indian equities, where financials, automobiles, capital goods, infrastructure and consumer-facing companies have a significant representation. Nvidia shares tumbled in after-hours trading following reports that the company’s board was considering removing longtime CEO Jensen Huang.

Wall Street rallies, but AI worries persist

US equities ended Wednesday’s session higher, with the S&P 500 gaining 1.31% to close at 7,619.38, while the Nasdaq Composite advanced 1.60% to 25,466.19. The Dow Jones Industrial Average added 0.49% to settle at 52,486.49.

Technology stocks led the gains after stronger-than-expected quarterly results from CoreWeave helped ease concerns about the sustainability of AI infrastructure spending. CoreWeave shares surged 24.7% after the company said it expected to achieve adjusted profitability in the first half of 2028. The Philadelphia Semiconductor Index jumped 5.7%.

However, the optimism was tempered in futures trade, with S&P 500 futures declining 0.2% amid renewed concerns over technology valuations. Investors are also assessing the US interest rate outlook after stronger-than-anticipated inflation data and hawkish commentary from Federal Reserve officials strengthened expectations of another rate increase in December.

For Indian markets, the key takeaway could be whether global investors extend their rotation towards traditional businesses, potentially lending support to domestic banking, automobile, industrial and consumption-related stocks.

Crude oil declines, adding to domestic tailwinds

Crude oil prices declined in early trade on Thursday, providing further relief to oil-importing economies such as India. Brent crude futures fell 0.9% to $91.9 per barrel, while US West Texas Intermediate (WTI) crude declined 0.9% to $85.8.

Prices retreated amid hopes of progress in negotiations to end the Iran and Russia-Ukraine wars, easing concerns over potential supply disruptions. However, uncertainty surrounding the Strait of Hormuz continues to keep supply-side risks in focus.

Lower crude prices are particularly positive for India as they could ease imported inflation, reduce pressure on the current account deficit and support the rupee. This could also improve the outlook for oil-sensitive sectors, including aviation, paints and chemicals.

Overall, Indian equities could find support from a possible global rotation away from AI-heavy technology stocks towards traditional sectors, alongside softer crude prices. The extent of gains, however, will depend on whether domestic investors sustain buying interest and foreign fund flows turn supportive.

Source

•  Exchanges