Indian indices are expected to open lower, with GIFT Nifty indicating a drop of nearly 190 points. This anticipated decline follows a massive 5.5% sell-off in the Nasdaq and a sharp plunge in Asian markets, driven by investor anxiety over potential US regulatory changes for AI infrastructure.
Indian equity markets are preparing for a difficult session on Friday, November 6, 2026. Data from GIFT Nifty suggests a drop of approximately 188 points at the opening, putting an immediate halt to the recent six-day winning streak that had helped the Nifty 50 index reclaim the 24,000 mark.
The sudden shift in mood comes after a turbulent night in international markets. The Nasdaq Composite index in the US experienced its steepest daily fall in 19 months, dropping 5.5%. The sell-off was primarily triggered by growing concerns among investors regarding the potential for stricter regulatory oversight on artificial intelligence and data center infrastructure following the outcome of the US midterm elections.
This pessimism spread rapidly across Asia as trading began. South Korea’s KOSPI index faced a severe decline of over 8%, forcing authorities to trigger circuit breakers to pause trading. Major semiconductor manufacturers, which are key to the global AI supply chain, saw their stock prices hit by steep double-digit percentage drops. Investors appeared to be pulling back from technology stocks that had driven much of the global market rally in recent times, fearing that new government policies could lead to higher costs or slower infrastructure expansion.
For Indian investors, the main concern is whether the recent domestic optimism—which pushed the BSE market capitalization past the Rs 500 lakh crore milestone—can withstand this global volatility. While local markets have been resilient, the rapid change in sentiment toward technology and AI-linked stocks is expected to weigh on domestic IT and manufacturing indices. The connection between global tech trends and local market performance often means that swings in the US and Asian markets can directly impact sentiment at home.
Investors will likely watch for how local IT and manufacturing stocks react during the trading session, given their reliance on the global tech environment. Additionally, the broader market's ability to hold key support levels after such a strong recent run will be a primary focus. The combination of shifting regulatory expectations in the US and the sudden spike in regional volatility suggests that the immediate trading session may focus on adjusting to this new risk environment rather than chasing further gains.