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AI Fears Shake Markets: Sensex, Nifty Dip
15 Feb
Summary
- Global tech stock selloff impacted Indian markets last week.
- AI disruptions and geopolitical risks are key market concerns.
- India-US trade developments supported markets previously.
Indian stock markets, represented by the Sensex and Nifty, concluded the previous week with losses. This downturn was primarily attributed to a widespread selloff in global technology stocks and growing apprehension regarding disruptions posed by artificial intelligence.
Looking ahead, market sentiment is expected to be shaped by macroeconomic data releases and international geopolitical events. Concerns surrounding AI-driven disruptions are also a significant factor, contributing to investor caution amid persistent market volatility.
Analysts suggest that while positive factors like improved valuations and strong GDP forecasts may sustain foreign institutional investor (FII) inflows, market leadership could pivot. Sectors such as banking, autos, and specific consumption-driven segments might gain traction as IT and metals contend with structural challenges and external pressures.
Foreign investors' trading patterns and the movement of the domestic currency will also play a crucial role in guiding market performance. Investors will be closely monitoring upcoming economic indicators, including WPI inflation and balance of trade data, for insights into price trends and the external sector's health.
