Pre-Open Points To Positive Start Amid Adverse Global Cues

Mumbai, October 23: Indian share rose at pre opensignalling a higher start despite the climb in oil and decline in Asian equities.

Nifty 50 rose 0.4% and Sensex advanced 0.7% at pre open.

Both the Sensex and Nifty have shed around 2% this week, with the benchmarks declining for three straight sessions, as crude climbed amid Houthi attacks on Saudi Arabia, a major oil exporter.

Foreign portfolio investors (FPIs) bought Indian equities worth a net Rs 1,022 crore on Thursday, while domestic institutional investors (DIIs) recorded net purchases of Rs 1,614 crore, according to provisional NSE data.

Colgate-Palmolive India will be in focus after reporting higher quarterly profit, supported by demand for its toothpaste portfolio.

Swiggy is also likely to attract attention after outlining plans to expand its quick-commerce business, Instamart, despite posting a larger-than-expected loss for the September quarter.

Shares of eMudhra have plunged 36% over two sessions after the company withdrew from the website security business following the discovery of flaws that triggered global security concerns.

Hatsun Agro,a dairy products maker, reported a 5.5% year-on-year increase in second-quarter net profit to Rs 116 crore, while revenue grew around 20%.

Hindustan Petroleum Corporation reported a 9% decline in September-quarter profit as higher tax expenses and a sharp spike in crude oil prices squeezed fuel retailing margins.

Asian Markets Decline

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4%, while Japan’s Nikkei 225 declined 1.7% and South Korea’s Kospi dropped 1.8%. Chinese blue-chip stocks also remained under pressure, with the CSI300 losing 1.1% before trimming its decline to 0.5% at the time of writing. The index touched its lowest level since July 2025. Hong Kong’s Hang Seng edged up 0.2% after a sharp decline in the previous session.

The weakness reflected growing concerns over the sustainability of the AI-driven rally, with investors reassessing whether massive investments in AI infrastructure would deliver adequate returns. The resulting sell-off in technology and semiconductor stocks weighed on sentiment across regional markets.

Wall Street Ends Mixed As AI Concerns Resurface

US stocks ended mixed on Thursday, with technology shares bearing the brunt of the sell-off. The Nasdaq Composite plunged 2.6%, marking its steepest daily decline since early June, while the S&P 500 fell 1.2% to 7,663.43. The Dow Jones Industrial Average edged up 0.02% to 52,867.98, highlighting the divergence between technology-heavy stocks and the broader market.

Meta Platforms shares slid around 7% despite the company reporting better-than-expected results, as investors focused on its substantial AI-related spending and plans to issue additional non-voting shares to fund its expansion. Tesla also came under pressure after cutting its capital expenditure forecast, renewing concerns about the pace and cost of investments in AI and robotics.

The technology sell-off spilled over into Asian trading, as investors reassessed valuations and the potential returns from AI-related investments. US Treasury yields also declined, reflecting shifting investor sentiment.

Crude Oil Prices Remain Elevated

Oil prices added to global market uncertainty, with Brent crude futures climbing above $112 a barrel on Thursday, approaching a five-month high. Further Houthi attacks in Saudi Arabia heightened concerns about potential supply disruptions and an escalation of the conflict in the Middle East.

For India, a sustained rise in crude oil prices poses a significant risk given the country’s dependence on energy imports. Higher oil prices can widen the import bill, put pressure on the rupee, fuel inflation and increase input costs for companies. Oil marketing companies, aviation stocks and other fuel-sensitive businesses could therefore remain in focus.

Source:

• Exchanges