Global sentiment has turned defensive after heavy profit-booking in high-valuation technology and AI-linked stocks in the US. Market participants are increasingly questioning the near-term returns from aggressive AI-driven capital expenditure, amid reports of funding moderation for large data-centre projects. Asian markets mirrored this risk-off tone, with stocks across the region trading lower in early deals, led by declines in Japan’s Nikkei index.
The cautious mood is also being reinforced by anticipation around key US inflation data due later in the day. Uncertainty over the future trajectory of global monetary policy has added to volatility, prompting investors to reduce exposure to risk assets.
On the domestic front, derivatives positioning points to a consolidation phase in the near term. Call writers are seen strengthening resistance at higher index levels, while put writers have shifted positions lower, reflecting limited confidence in an immediate rebound. That said, relatively subdued volatility levels and oversold technical indicators suggest that intermittent short-covering rallies cannot be ruled out during the session.
Key stocks and developments to watch
NTPC commissioned nearly 360 MW of additional solar capacity in Gujarat and Rajasthan, taking its total group capacity beyond 85.5 GW and strengthening its renewable energy portfolio.
HCLTech secured a multi-year contract from Dutch lender ASN Bank to modernise digital operations and streamline IT services.
SEBI announced a reduction in mutual fund expense ratios and cleared a revamp of broker and fund regulations, aiming to improve transparency and investor outcomes.
IIT Bombay and Vertiv entered into a collaboration to develop next-generation cooling solutions for AI data centres, addressing rising thermal challenges from high-performance GPUs.
In commodities, the Directorate General of Foreign Trade invited bids for the first tranche of gold import quotas under the India–UAE CEPA, allowing reduced-duty imports through a competitive process. Meanwhile, the rupee staged a sharp rebound on Wednesday, snapping a five-day losing streak, reportedly supported by active intervention from the Reserve Bank of India.
