Indian equities remained stable on Friday, November 6, 2026, defying a 6% crash in the Nasdaq 100 caused by AI-related concerns. Strong foreign investor inflows of Rs 35,781 crore helped support local indices, although rising Brent crude prices above $100 per barrel and increased volatility remain key areas of caution for the market.
Indian stock markets showed notable resilience on Friday, November 6, 2026, holding firm even as global indices reeled from a sharp sell-off in technology shares. While international sentiment was hit by a 6% plunge in the Nasdaq 100—driven by investor concerns over the artificial intelligence bubble and uncertainty following US midterm election results—Indian benchmark indices managed to avoid a similar collapse.
Impact of Global Tech Rout
The global sell-off was triggered by reports of cooling expenditure in data centers and broader AI infrastructure, which deeply impacted the Philadelphia Semiconductor Index. This correction caused ripple effects across major global markets, leading investors to pull back from riskier assets. However, India's market performance remained relatively steady, snapping a six-session winning streak with only marginal fluctuations rather than a deep correction.
Role of Foreign Inflows
A primary factor providing a buffer to Indian equities was the continued support from foreign institutional investors. Over the five trading sessions leading up to November 6, data showed that foreign investors net bought Rs 35,781 crore worth of Indian stocks. This sustained capital infusion acted as a strong defense, preventing local markets from fully reflecting the negative sentiment seen in US and Asian tech-heavy markets.
Risks and Sectoral Trends
Despite the domestic resilience, the market faces clear headwinds. Brent crude oil prices breached the $100 per barrel mark on Friday, raising concerns about inflationary pressure on India’s import-heavy economy. This energy cost rise, coupled with a spike in market volatility as reflected in the India VIX, has kept participants cautious.
Sectoral performance showed a clear divide. While indices like Metal, Realty, and Oil and Gas faced pressure, the IT sector demonstrated unexpected strength, with major domestic IT firms holding ground better than their international counterparts. This divergence suggests that investors are distinguishing between the fundamental health of local companies and the broader, sentiment-driven decline in global tech stocks.
Moving forward, the market trajectory will likely depend on how these external pressures develop. Investors are closely tracking oil price movements and their potential impact on domestic inflation, as well as any further updates regarding US policy changes that could affect global tech spending. The focus remains on whether domestic liquidity can continue to offset potential global volatility in the coming weeks.