Nifty, Sensex Likely to Open Higher on Wednesday After U.S. Tech Stocks Rebound

Pre-Market Update at 7:48 AM: The Indian stock market benchmark indices, the BSE Sensex and the Nifty 50, are likely to open higher on Wednesday, stabilising after a sharp sell-off in the previous session, tracking gains in global markets and a rebound in U.S. technology stocks.

As of 7:36 am, GIFT Nifty was trading around the 25,664 level, a premium of nearly 61 points over the previous close of Nifty futures, indicating a positive start for domestic equities. The upbeat opening is supported by three key catalysts, a rebound in U.S. technology stocks after AI disruption-led weakness, FIIs turning net buyers for February with net inflows of Rs 1,369.93 crore so far, and positive cues from Asian markets following the rally on Wall Street.

On February 24, FIIs were net sellers to the tune of Rs 102.53 crore, while DIIs bought equities worth Rs 3,161.22 crore. Despite Tuesday’s outflow, FIIs remain net buyers for February so far with net inflows of Rs 1,369.93 crore.

On Tuesday, Indian equities ended sharply lower amid broad-based selling triggered by AI disruption fears. The Sensex declined 1,068.74 points, or 1.28 per cent, to close at 82,225.92, while the Nifty 50 fell 288.35 points, or 1.12 per cent, to settle at 25,424.65.

The U.S. stock market ended higher on Tuesday, led by strong gains in technology shares. The Dow Jones Industrial Average rose 370.44 points, or 0.76 per cent, to 49,174.50. The S&P 500 gained 52.32 points, or 0.77 per cent, to 6,890.07, while the Nasdaq Composite advanced 236.41 points, or 1.05 per cent, to 22,863.68. 

Among major movers, Nvidia gained 0.68 per cent, Advanced Micro Devices surged 8.8 per cent, Intel rose 5.71 per cent, Microsoft added 1.18 per cent, Apple climbed 2.24 per cent, Amazon gained 1.60 per cent and Meta Platforms edged up 0.3 per cent. Other notable performers included Tesla, up 2.39 per cent; Keysight Technologies, soaring 23.1 per cent; FactSet, rising 5.9 per cent; Salesforce, up 4.1 per cent; and Thomson Reuters, jumping 11.5 per cent. 

Advanced Micro Devices agreed to sell up to USD 60 billion worth of AI chips to Meta Platforms over five years, allowing it to acquire as much as 10 per cent stake in the chipmaker.

Geopolitical tensions remain elevated as the U.S. initiated its largest military buildup in the Middle East since the 2003 Second Gulf War, deploying two aircraft carriers and additional F-22 fighter jets to Israel.

In commodities, gold rose to around USD 5,180 per ounce, supported by trade and geopolitical uncertainty after U.S. President Donald Trump’s 10 per cent global tariff came into effect, with plans to increase it to 15 per cent. Spot silver jumped 1.5 per cent to USD 88.28 per ounce. Oil prices hovered near seven-month highs amid concerns of supply disruption due to U.S.-Iran tensions, with WTI crude futures rising 0.64 per cent, or 42 cents, to USD 66.05 per barrel.

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Disclaimer: The article is for informational purposes only and not investment advice.