GIFT Nifty dips as tech stocks slide and Fed holds rates, hinting at cautious start for Indian markets

GIFT Nifty slipped to 22,683 around 7:40 a.m., down 0.22 percent, pointing to a modestly negative opening for the Sensex and Nifty. The decline follows mixed performance in Asian markets and renewed selling in global technology shares after disappointing earnings from major AI-related companies. The U.S. Federal Reserve’s decision to keep its benchmark rate unchanged, coupled with market expectations of a possible 25-basis-point hike in December, is adding to investor caution. Crude oil prices eased slightly, with Brent futures falling to $114.50 a barrel, but remained elevated, posing a continued headwind for Indian equities.

On Wednesday, the Sensex closed 352.64 points lower at 73,246.03 and the Nifty dropped 50.90 points to 22,698.85. Foreign institutional investors bought Rs 871 crore of Indian stocks, extending a buying streak, while domestic institutions purchased shares worth Rs 643 crore.

In Asia, South Korea’s Kospi fell 1.8 percent, led by a more than 3 percent drop in Samsung Electronics after its profit missed expectations. The Nikkei 225 futures edged up 0.1 percent, Hong Kong’s Hang Seng was largely unchanged, and the Shanghai Composite rose 0.9 percent, while the MSCI Asia Pacific Index slipped 0.1 percent.

U.S. technology futures weakened after Alphabet’s shares fell 10 percent in after-hours trading, prompting Nasdaq 100 futures to drop 1 percent and S&P 500 futures to decline 0.3 percent. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted modest gains on Wednesday following the Fed’s rate decision.

"Crude oil is a key headwind for domestic markets, restricting the scope for a sustained recovery," said Ponmudi R, CEO of Enrich Money. He added that even positive cues from regional markets may not be enough to support a durable upward move amid ongoing geopolitical risks and high energy prices.