Markets – Global Equities Rally as AI Fears Subside
Markets – Global equity markets staged a recovery on Wednesday morning, with investors returning to risk assets after a recent phase of heavy selling. The rebound followed a moderation in worries surrounding artificial intelligence-driven valuations, although traders remain cautious amid ongoing geopolitical and economic uncertainties.
Indian Benchmarks Begin Session in Positive Territory
Indian indices reflected the improved global mood at the opening bell. The Nifty 50 started the day at 25,512.60, rising 87.95 points, or 0.35 percent. The BSE Sensex also moved higher, opening at 82,530.22 with a gain of 304.30 points, translating to an increase of 0.37 percent.
The early strength signaled a shift from the previous sessions when concerns about stretched valuations and global headwinds had weighed on sentiment. Traders said bargain buying in frontline stocks helped push benchmarks into the green.
Global Cues and US Developments in Focus
Market analysts noted that international triggers are likely to dictate the near-term direction of equities. Ajay Bagga, a banking and market expert, said that while domestic futures suggested a firm start, investors were closely monitoring developments in the United States, particularly remarks expected from US President Donald Trump.
According to Bagga, global sentiment has been influenced by multiple cross-currents — including earlier anxiety linked to artificial intelligence stocks, tariff-related uncertainties, rising tensions involving Iran, and concerns about stress building within segments of the US private credit market.
He pointed out that US markets regained momentum after optimism returned to major technology companies, reducing fears of an extended correction.
US Markets Close Higher as Tech Stocks Recover
Wall Street finished Tuesday’s session with solid gains. The Dow Jones Industrial Average climbed 370 points to settle at 49,174.50. The Nasdaq Composite rose by more than 1 percent, adding 244 points to close at 22,871. Meanwhile, the S&P 500 advanced 54 points, or 0.79 percent, ending the session at 6,892.
Technology stocks were among the primary drivers of the rebound. Shares of IBM on the New York Stock Exchange rose 2.67 percent to close at USD 229.32, reflecting renewed investor confidence in large-cap tech counters.
Broad-Based Gains Across Indian Sectors
Back home, buying interest was visible across most sectoral indices on the National Stock Exchange. The Nifty IT index recorded a gain of 0.97 percent, supported by the positive cues from US technology stocks.
The Nifty Metal index rose 0.89 percent, while Nifty FMCG added 0.40 percent. Nifty PSU Bank advanced 0.31 percent, and Nifty Pharma moved up 0.24 percent. The widespread participation indicated that the rally was not confined to a single pocket of the market.
Precious Metals Remain Firm
While equities advanced, precious metals continued to trade at elevated levels. In India, 24 karat gold was priced at Rs 160,750 per 10 grams, marking a rise of 0.5 percent during Wednesday’s session. Silver saw sharper gains, climbing more than 2 percent to Rs 265,981 per kilogram.
Analysts attributed the firmness in bullion prices to persistent global uncertainty, which has kept safe-haven demand intact despite the equity rebound.
Asian Markets Extend Gains
Markets across Asia mirrored the strength seen on Wall Street. Japan’s Nikkei 225 surged 1.61 percent, gaining 923 points to reach 58,245. Taiwan’s weighted index advanced 700 points, or 2 percent, to 35,496. South Korea’s KOSPI jumped over 2 percent, rising 122 points to 6,092.99, while Hong Kong’s Hang Seng index climbed 0.81 percent, adding 241 points to 26,832.
Experts observed that Asian equities benefited from the renewed appetite for technology stocks in the United States. South Korea’s market, in particular, has posted notable gains in recent weeks, reflecting sustained investor interest in semiconductor and technology counters.
Despite Wednesday’s recovery, market participants remain attentive to policy signals, geopolitical developments, and macroeconomic data that could influence volatility in the days ahead.