Global Tech Rout Puts Dalal Street’s Six-Day Rally to the Test as GIFT Nifty Slips
Indian equity markets are bracing for a cautious opening on Friday, November 6, after a sharp sell-off in US technology stocks triggered heavy losses across Asian markets. Early signals from GIFT Nifty point towards a weaker start for the Nifty 50 and BSE Sensex, raising the possibility of profit-booking after six consecutive sessions of gains on Dalal Street.
GIFT Nifty was trading around the 24,415–24,460 range in early morning deals, indicating a discount of roughly 160–185 points against the previous Nifty 50 close. The movement suggests that investors may begin the session on a defensive note as concerns over global technology valuations and artificial intelligence investments weigh on sentiment.
The domestic market, however, enters Friday's session after a powerful rally. On Thursday, the Nifty 50 advanced approximately 576 points, or 2.40%, to close at 24,536.60. The Sensex climbed 2,008.61 points, or 2.60%, to settle at 79,310.01. Both benchmarks extended their winning streak to six sessions, supported by improving investor confidence, lower crude oil prices and strong foreign fund inflows.
Wall Street sell-off rattles global investors
The biggest concern for Indian investors is the sharp decline on Wall Street overnight. US equities witnessed widespread selling on Thursday, led by technology and semiconductor companies.
The Nasdaq Composite dropped 5.52% to close at 24,315.00, marking one of its steepest single-session declines in recent months. The S&P 500 fell 4.36% to 7,353.73, while the Dow Jones Industrial Average declined 3.44% to 51,523.06.
The sell-off reflected growing uncertainty around the future of artificial intelligence-related investments. Investors are questioning whether the enormous spending on data centres, advanced chips and AI infrastructure can continue at the pace previously expected.
Political developments in the United States have added another layer of uncertainty. Following the US midterm elections, market participants are assessing whether changes in the political balance could lead to tougher scrutiny or regulation of the technology industry.
The decline in major semiconductor stocks intensified the pressure. Nvidia, Advanced Micro Devices, Micron Technology and other chip-related companies recorded substantial losses, highlighting how quickly sentiment can change in sectors that had attracted significant investor enthusiasm.
Asian markets extend the technology sell-off
The weakness on Wall Street spread to Asian markets on Friday, with technology-heavy exchanges facing particularly strong pressure.
Japan's Nikkei 225 declined sharply, falling more than 6% at one stage during early trading. South Korea's Kospi also suffered heavy losses, dropping more than 7% and triggering a temporary trading halt under the exchange's circuit-breaker mechanism.
Technology and semiconductor companies were among the biggest contributors to the regional decline. Shares of major chipmakers and electronics companies came under pressure as investors reassessed the outlook for global demand and AI-related capital expenditure.
Other Asian markets, including Hong Kong and mainland China, also traded lower. The broad decline indicates that the current weakness is not limited to a single market or company but reflects a wider reduction in appetite for risk.
For Indian equities, the international developments could influence sentiment during the opening hours. However, the extent of any domestic correction will also depend on local institutional activity, company-specific news and the strength of buying at lower levels.
Can domestic buying limit the damage?
Despite the negative global signals, India has some factors that could provide support to the market.
Foreign institutional investors have recently returned as significant buyers of Indian equities. On Thursday, foreign investors purchased shares worth approximately ₹14,974 crore, marking their fifth consecutive session of net buying. The reported inflow was among the strongest single-day purchases in recent years.
Domestic institutional investors, meanwhile, were net sellers, with sales of around ₹10,444 crore during the session. The difference between foreign and domestic flows will remain an important indicator for traders assessing the market's direction.
Lower crude oil prices had also improved sentiment in the previous session. India imports a large share of its crude oil requirements, making energy prices an important factor for inflation, the current account and corporate costs.
However, crude prices rebounded in early Asian trading on Friday amid renewed concerns over supply disruptions in the West Asian region. Brent crude moved higher towards the $99-per-barrel level, although prices remained on track for a substantial weekly decline.
A sustained reduction in crude prices could support Indian equities, while another sharp increase may complicate the outlook.
Stocks likely to remain in focus
Investors may track companies reporting quarterly earnings and those facing company-specific developments.
Bharti Airtel could attract attention after its second-quarter profit missed market expectations, with higher network operating costs affecting performance despite subscriber additions and customer upgrades.
Titan, Life Insurance Corporation of India, ONGC and Britannia may also remain on investors' radar following their latest earnings announcements. Their reported results and management commentary could influence trading in the respective sectors.
Apart from earnings, banking, information technology, energy and heavyweight index constituents may determine whether the benchmarks recover from an initial decline or remain under pressure.
What should investors watch during Friday's session?
Market participants are likely to monitor three broad factors: the opening direction indicated by GIFT Nifty, the performance of Asian markets and the behaviour of institutional investors.
The Nifty 50's previous close near 24,537 will be an important reference point. Traders may watch whether the index can regain lost ground after a weak opening or whether selling pressure increases as investors book profits following the recent rally.
The Sensex will also be closely watched after its substantial advance on Thursday. A decline following such a strong session would not necessarily indicate a change in the broader market trend, but it could signal that investors are becoming more cautious at elevated short-term levels.
Importantly, GIFT Nifty is an indicator of market expectations rather than a guarantee of the Indian market's opening price. Actual trading may differ depending on overnight developments, pre-opening orders and domestic demand.
The key question for Dalal Street is whether strong foreign inflows and improving domestic sentiment can absorb the pressure coming from global markets. Friday's session could provide an early indication of whether the six-day rally has enough strength to withstand international volatility.
Stock Market Today: Sensex and Nifty Set for a Bullish Opening as Global Rally Lifts Investor Sentiment
The Indian stock market is expected to open sharply higher on Thursday, November 5, 2026, as strong signals from GIFT Nifty, falling crude oil prices and a rally on Wall Street improve investor sentiment. The benchmark Sensex and Nifty 50 are likely to extend their recent winning streak, although volatility in Asian markets could influence trading during the session.
GIFT Nifty was trading around 24,300–24,315 in early morning trade, indicating a premium of approximately 340–355 points over the previous Nifty futures closing level. The positive indication comes after Indian equity benchmarks ended Wednesday's session in the green for the fifth consecutive trading day.
However, investors will need to monitor developments in global markets. South Korea's Kospi declined more than 3%, while Japan and Taiwan also witnessed weakness in early trading. In contrast, US markets closed with substantial gains after the latest US midterm election results.
The decline in international crude prices is another important factor supporting Indian equities, as lower oil prices can ease pressure on India's import bill and inflation.
1. GIFT Nifty signals a strong opening
GIFT Nifty provided one of the strongest positive signals for the Indian market before Thursday's opening bell.
The index was trading near 24,300 in early trade, suggesting that the Nifty 50 could begin the session considerably higher than its previous close.
A strong opening could help the domestic market extend its recovery, particularly in heavyweight banking, automobile, financial and consumer stocks.
However, a gap-up opening does not guarantee that the market will maintain its gains throughout the day. Traders will watch whether buying interest continues after the initial opening moves.
Market participants may also book profits after five consecutive sessions of gains, particularly if the indices approach important technical resistance levels.
2. Sensex and Nifty 50: Previous session performance
Indian benchmark indices continued their positive momentum on Wednesday, November 4.
The BSE Sensex gained 383.55 points, or 0.50%, to close at 77,301.40. During the session, it touched an intraday high of 77,396.04.
The NSE Nifty 50 advanced 149.75 points, or 0.63%, to settle at 23,960.60.
The gains were supported by buying in financial, automobile, FMCG and other heavyweight stocks. Improving foreign investor participation and falling crude oil prices also helped market sentiment.
The Nifty's close near the 24,000 mark has made this level particularly important for Thursday's trading session.
3. Wall Street rallies after US midterm election results
US stock markets ended Wednesday with strong gains following the Democratic Party's victory in the US midterm elections.
The Dow Jones Industrial Average surged 1,569.40 points, or approximately 3%, to close at 53,356.12. It was one of the strongest single-day advances for the index in recent months.
The S&P 500 climbed 119.70 points, or 1.6%, to finish at 7,688.62.
The Nasdaq Composite also advanced 364.50 points, or 1.4%, to settle at 25,736.51.
Investors reacted positively to the election outcome and a decline in crude oil prices. Political developments also influenced expectations surrounding US economic and foreign policy.
The rally on Wall Street provided an important positive signal for Asian markets and Indian equities. However, technology-related stocks faced pressure in parts of Asia despite the broader improvement in US market sentiment.
4. South Korea's Kospi slides more than 3%
Asian markets presented a mixed picture on Thursday morning.
South Korea's Kospi was among the biggest regional laggards, falling more than 3% during early trading. The index briefly dropped over 4%, triggering a temporary market mechanism designed to control certain types of program-driven selling.
The weakness was concentrated in technology and semiconductor-related stocks.
Samsung Electronics and SK Hynix faced selling pressure as investors reassessed valuations of companies linked to artificial intelligence and data-centre investment.
The Kosdaq index also declined sharply.
The weakness in South Korean technology shares is important for global investors because semiconductor companies play a major role in the international AI and electronics supply chain.
Japan's Nikkei 225 also moved lower after an initially positive start, while Taiwan's Taiex traded in negative territory.
The contrasting performance of Asian markets indicates that investors are not responding uniformly to the positive Wall Street session.
5. Crude oil prices remain an important market trigger
Crude oil prices are another major factor that Indian investors will monitor.
Brent crude fell sharply in the previous session, losing more than 8% amid changing expectations about the geopolitical situation involving the United States and Iran.
On Thursday morning, Brent crude was trading around the $93–95 per barrel range in early market reports, while US West Texas Intermediate crude was near $88 per barrel.
Lower oil prices are generally positive for India because the country imports a substantial portion of its crude oil requirements.
A sustained decline can reduce pressure on the import bill, support the rupee and improve the operating environment for sectors such as aviation, paints, chemicals and oil-consuming industries.
However, any fresh escalation in geopolitical tensions could quickly change the direction of crude prices.
6. Foreign and domestic institutional investor activity
Institutional investment flows will remain an important factor for Dalal Street.
Foreign institutional investors continued their buying activity for the fourth consecutive session on Wednesday. They purchased Indian equities worth approximately Rs 7,284 crore.
Domestic institutional investors, meanwhile, sold shares worth around Rs 3,712 crore.
The continued participation of foreign investors has helped support the recent market recovery.
Investors will watch whether this buying trend continues on Thursday, particularly in large-cap financial and consumer companies.
7. Gold and silver prices in focus
Precious metals also attracted attention after the decline in the US dollar and Treasury yields.
Spot gold rose around 3.3% in the previous session, marking its strongest single-day advance since August. It was trading near $4,070 per ounce in early Thursday reports.
Silver also gained, moving towards $52.36 per ounce after a strong previous session.
The movement in gold and silver prices will be watched alongside currency fluctuations and changing expectations about US monetary and economic policy.
8. Stocks likely to remain in focus
Several companies could attract attention following their latest earnings announcements and business updates.
BSE: The exchange operator reported a 45% rise in second-quarter profit, making its shares important to watch.
Apollo Hospitals: The healthcare company reported a substantial increase in quarterly profit, with earnings rising by nearly one-third.
Lenskart: The eyewear retailer also reported strong earnings growth, with quarterly profit more than doubling.
Apart from these companies, banking, automobile, FMCG, technology and aviation stocks may remain active depending on the strength of buying after the opening bell.
9. Sensex and Nifty 50: Important technical levels
Technical analysts are watching important support and resistance levels as the market approaches the psychological 24,000 mark.
For the Nifty 50, immediate support is placed around 23,700. On the upside, 24,000 remains an important resistance level, followed by 24,200.
A sustained move above 24,000 could improve the short-term technical outlook, while a failure to hold higher levels may lead to consolidation or profit booking.
For the Sensex, immediate support is seen around 76,500–76,900, while resistance is placed in the 77,700–78,000 zone.
These are analyst-provided technical reference levels, not guaranteed market targets.
What should investors watch today?
The November 5 trading session will be influenced by several interconnected developments: GIFT Nifty's strong indication, the Wall Street rally, weakness in South Korean technology stocks, falling crude oil prices and institutional fund flows.
The initial opening could be positive, but the market's ability to sustain gains will be more important than the opening gap itself.
Investors should also monitor global geopolitical developments, currency movements and company-specific earnings announcements.
With the Nifty approaching the 24,000 level and the Sensex trading above 77,000, Thursday could be an important session for determining whether the recent recovery has further room to continue or whether traders begin booking profits.