Sensex jumps 470 points, Nifty rises 0.5% as AI fears ease | Will rally sustain?

Mumbai: Indian equity markets began the session in positive territory, mirroring gains across global markets. The Nifty 50 opened at 25,512.60, rising 87.95 points or 0.35 per cent. The BSE Sensex opened at 82,530.22, up 304.30 points or 0.37 per cent, and extended gains to nearly 470 points in early trade.

The rebound follows a recovery in US equities, where concerns over artificial intelligence-led market volatility eased and investors returned to technology stocks.

Global cues in focus

Market participants are closely watching global developments, including a scheduled speech by US President Donald Trump, which experts say could influence sentiment.

Banking and market expert Ajay Bagga told ANI that while Indian stock futures indicated a positive opening, Trump’s speech could shift global market mood. He noted that global sentiment remains sensitive to AI-related volatility, US tariff uncertainty, tensions involving Iran, and stress in parts of the US private credit market.

US markets closed higher overnight. The Dow Jones Industrial Average rose 370 points to 49,174.50. The Nasdaq Composite gained over 1 per cent, rising 244 points to 22,871. The S&P 500 advanced 54 points or 0.79 per cent to close at 6,892.

Technology shares contributed to the recovery, with IBM climbing 2.67 per cent to close at USD 229.32 on the NYSE.

Sectoral gains in India

All major sectoral indices on the NSE opened higher. Nifty IT gained 0.97 per cent, Nifty Metal rose 0.89 per cent, Nifty FMCG advanced 0.40 per cent, Nifty PSU Bank increased 0.31 per cent, and Nifty Pharma moved up 0.24 per cent.

Asian markets rally

Asian markets also traded firmly in positive territory. Japan’s Nikkei 225 surged 1.61 per cent, gaining 923 points to 58,245. Taiwan’s weighted index climbed 2 per cent to 35,496. South Korea’s KOSPI rose more than 2 per cent to 6,092.99, while Hong Kong’s Hang Seng Index added 0.81 per cent to 26,832.

Analysts noted that Asian equities were supported by the rebound in US Big Tech stocks.

Gold and silver remain elevated

Precious metals continued to trade at elevated levels. Gold prices in India stood at Rs 160,750 per 10 grams for 24 karat gold, up 0.5 per cent. Silver prices surged over 2 per cent to Rs 265,981 per kilogram.

Despite the rebound, market experts caution that volatility may persist amid ongoing tariff uncertainty, geopolitical tensions and policy developments in the US.