Pre-Open Points To Flat Start After Recent Rally

Mumbai, November 12: Indian shares flatlined at pre-open, signalling a muted start after the recent rally driven by global rotation out of AI, foreign inflows and cooling crude.

The Nifty 50 rose 0.02% and the Sensex rose 0.08% at pre-open.

The Nifty 50 closed at an over eight-month high on Wednesday, extending its November rally as overseas investors continued to pour money into Indian equities. Foreign portfolio investors (FPIs) were net buyers of shares worth Rs 12,563 crore on Wednesday, according to provisional exchange data, taking their net purchases for November to $6.43 billion. This is already the highest monthly inflow since September 2024.

The sustained foreign buying has propelled the Nifty 50 and Sensex up 9.6% and 10%, respectively, so far in November, marking a sharp turnaround for a market that had underperformed several emerging-market peers over the past two years amid elevated crude oil prices and relatively limited exposure to the global AI-driven rally.

Among individual stocks, Adani Green Energy, Coforge, Life Insurance Corporation of India (LIC) and Meesho will be in focus after MSCI announced their inclusion in the MSCI India Index. PI Industries, meanwhile, will be excluded from the benchmark.

Bajaj Finance will also be watched after the non-bank lender launched a share sale worth more than $1 billion to institutional investors, setting a floor price of Rs 992.25 per share.

Tata Power is another stock likely to attract attention after appointing Sanjay Banga as its CEO. The company also reported a nearly 49% year-on-year increase in second-quarter profit.

Asian Markets Mixed As Technology Concerns Weigh

Asian markets traded 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 a degree of caution.

Investor sentiment remained clouded by concerns over elevated AI valuations and the sustainability of massive investments in the technology. Any resulting rotation away from technology-heavy markets towards traditional businesses could create opportunities for Indian equities, where financials, automobiles, capital goods, infrastructure and consumer-facing companies have a significant representation.

Adding to the uncertainty surrounding the technology sector, 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 will 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.

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