Indian Markets Remain Resilient Despite US Tech Sell-Off
Indian equity indices stayed stable on November 6 despite a severe crash in US technology stocks and broader global market declines.
The BSE Sensex and NSE Nifty surged over 8% across six trading sessions ending November 6, adding approximately ₹29 lakh crore to investor wealth. This rally was fueled by falling crude oil prices and strong foreign institutional investments, including ₹7,284 crore in equity purchases on a single Wednesday. On November 6, the Sensex rose 2,009 points to close at 79,310, while the Nifty increased by 576 points to reach 24,536.
Despite this momentum, global markets faced a severe sell-off on Thursday. In the United States, the Nasdaq plunged 5.52%, the S&P 500 fell 4.36%, and the Dow Jones Industrial Average dropped 3.44%. This tech rout was driven by concerns that the Democratic Party, having gained control of Congress, would oppose massive data center investments. The volatility spread to Asia, with Taiwan's weighted index falling 8% and South Korea's KOSPI dropping over 7%.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that India remained resilient against this global trend. He attributed this stability to foreign institutional investors purchasing equities worth ₹35,781 crore over the last five trading sessions. While the US markets experienced a "blood bath," Indian indices opened marginally higher on November 6, with the Nifty 50 gaining 0.01% and the Sensex rising 0.13%.
