Tech Rally Fuels Optimistic Sentiment Across Global Markets, India Poised to Gain

Global equity markets are displaying an upbeat tone this week, driven primarily by technology sector momentum following Nvidia’s strong quarterly performance and constructive guidance. This positive sentiment is extending across Asian trading floors, with implications rippling into the Indian market ahead of Thursday’s opening session.

Asia-Pacific Markets Chase Technology Strength

The technology-led rally has taken hold across the region. Japan’s Nikkei and South Korea’s Kospi each climbed approximately 3 percent during morning trading, signaling robust appetite for growth-oriented equities. This Asian momentum reflects overnight strength in U.S. technology shares, where the Nasdaq Composite advanced 0.6 percent while the S&P 500 gained 0.4 percent and the Dow Jones edged 0.1 percent higher.

The U.S. market’s overnight performance was mixed, however. While tech stocks benefited from Nvidia’s earnings beat, discretionary weakness emerged as Target disappointed on comparable sales figures. Additionally, October Federal Reserve meeting minutes indicated divergent views among policymakers regarding rate trajectory and the inflation implications of proposed tariffs. These cross-currents have created a balanced backdrop for Thursday’s trading.

India Positioned for Opening Gains

Indian equities appear positioned to extend recent momentum at the Thursday session’s commencement. The Sensex and Nifty benchmarks each climbed 0.6 percent on Wednesday, with information technology shares particularly strong following reports that the first phase of the India-U.S. bilateral trade agreement has approached finalization. This development underscores potential tailwinds for India’s export-oriented sectors.

Market internals showed mixed capital flows on Wednesday. Foreign institutional investors deployed a net Rs 1581 crore, while domestic institutions accumulated Rs 1360 crore in equities. The rupee closed relatively stable at 88.5875 per U.S. dollar.

Crosscurrents and Risks for Session Progress

Despite the constructive opening setup, traders should monitor several offsetting factors as the session unfolds. The weekly expiry of Sensex options contracts may prompt profit-taking at higher price levels. Simultaneously, persistent uncertainty surrounding the U.S. Federal Reserve’s policy path continues to weigh on risk sentiment, particularly as markets anticipate forthcoming employment data.

Commodity and Currency Dynamics

Oil prices ticked marginally higher following sharper overnight declines prompted by demand concerns and easing supply pressures. The U.S. dollar index remained entrenched near six-month peaks ahead of the delayed jobs report. Gold prices drifted lower in the broader risk-on environment.

Europe Treads Water Amid Structural Concerns

European bourses ended Wednesday relatively flat, though with downside undertones. The Stoxx 600 closed barely changed, the German DAX slipped marginally, France’s CAC 40 retreated 0.2 percent, and London’s FTSE 100 declined 0.5 percent. Recent session losses have reflected persistent worries about artificial intelligence valuation excesses and uncertainty surrounding Federal Reserve interest rate intentions.

Geopolitical developments, including reports of fresh diplomatic initiatives between major powers, continue to shape the macro backdrop against which these market moves unfold.