Nifty 50 Defies Asia's AI Meltdown for Seventh Straight Gain as Foreign Inflows, Lower Oil Lift Indian Stocks

MUMBAI, India — Indian stocks bucked a steep selloff across Asia on Friday, with the Nifty 50 rising as foreign investors poured money into the market and the country's limited exposure to the artificial intelligence trade shielded it from the global rout.

The Nifty 50 was up 139.65 points, or 0.57%, at 24,676.25 in afternoon trading.

Indian indices extended their winning streak to a seventh session, as sustained foreign inflows and low direct AI exposure cushioned the impact of the tech selloff on Wall Street and in Asia.

A contrast with Asia

The gains came amid declines of 8% in South Korea's Kospi and 5% in Japan's Nikkei, as worries over slowing AI infrastructure investment led to a selloff in technology stocks.

Analysts see India as a beneficiary of the shift. With AI-heavy markets across Asia falling, there are hopes India may see higher allocations of emerging-market inflows, Business Today reported.

Strong week

Friday's gains extended a powerful rally. On Thursday, the Sensex surged 2,008.61 points, or 2.60%, to 79,310.01, while the Nifty jumped 576 points, or 2.40%, to 24,536.60.

Over the six-session rally through Thursday, the Nifty gained 1,837.75 points, or 8%.

Oil prices and politics helped. The Nifty and Sensex rallied on Thursday after Brent crude slipped below $100 a barrel, while expectations that the Democrats' sweeping midterm win could speed efforts to end the U.S.-Iran conflict improved risk appetite.

Foreign money is returning. Foreign institutional investors pumped nearly 15,000 crore rupees into Indian equities.

Leaders

Automaker Mahindra & Mahindra led the way. It spearheaded the rally following stellar quarterly results, while Indian IT companies gained as investors sought alternatives to heavy AI hardware.

Broader market weaker

Not all stocks participated. Early Friday, the Nifty Midcap 100 fell 1.17% and the Nifty Smallcap 100 fell 1.67%, while the India VIX fear gauge rose 5.74% to 16.48.

Analysts said the rally is concentrated in larger companies. One analyst told Business Today "this rally is driven by large-caps which had become attractively valued."

Investors will watch whether foreign inflows continue and whether oil prices stay below $100 a barrel.