Indian shares defy global tech slump as US election and lower oil prices lift markets

The Indian stock market rose nearly 1% on Friday, on track to end higher for the seventh straight day, even as markets in Asia, the United States, and New Zealand tumbled amid jitters over US midterm election results and concerns about a reversal of the artificial intelligence boom. The Sensex added 702.95 points or 0.9% to reach 80,012.27 around midday, extending its longest winning run in a year.

Global Tech Slump

Global markets dropped sharply after Democrats swept control of the US Congress, deepening fears of tighter artificial intelligence regulations and potential roadblocks to constructing data centres. The US tech-heavy Nasdaq Composite index fell 5.5% in its biggest single-day drop in 19 months. Nvidia dropped over 9%, while Tesla and SpaceX crashed 9 to 11 percent. Asian markets followed, with South Korea's Kospi, Taiwan's Taiex, and Japan's Nikkei 225 indices dropping 5 to 6 percent. In New Zealand, the S&P/NZX 50 Index fell 0.66%, while New Zealand's Tāiko Critical Minerals received conditional approval for its Barrytown Flats project.

Market Boost

Indian equities benefited fundamentally from the US election results and lower oil prices. The Democrats' victory lifted the Indian market 2.5% on Thursday to its highest level in several months on hopes of a lasting resolution to the crisis in West Asia. Crude prices fell to around $90 a barrel from around $115 a barrel a few weeks ago. Analysts at Kotak Institutional Equities noted that India's macro situation could look much better with lower oil prices. Better-than-expected earnings for the July-September quarter and net buying by foreign investors also supported the market.

Context

Major stock indices track the collective performance of leading publicly traded companies across different sectors and regions. Shifts in global politics, energy costs, and regulatory expectations frequently trigger capital reallocation between technology and traditional commodity-linked assets.