Benchmarks extend gains as FII buying offsets global AI sell-off; Nifty above 24,700

The key equity benchmarks extended gains in afternoon trade on Friday, defying a global sell-off in AI-linked stocks, as sustained buying by foreign institutional investors (FIIs) lifted sentiment. The Nifty crossed the 24,700 level. FIIs were net buyers of equities worth Rs 14,974.68 crore on Thursday. Positive sentiment ahead of the Diwali celebrations and the ongoing festive season further underpinned the rally, while relatively stable crude oil prices also helped. Pharma stocks were in demand as the global tech rout drove a rotation into domestic defensives.

At 13:30 IST, the S&P BSE Sensex jumped 882.66 points or 1.11% to 80,192.67. The Nifty 50 index rose 202.95 points or 0.83% to 24,739.55.

In the broader market, the Nifty MidCap 150 Index declined 0.94% and the Nifty SmallCap 250 Index fell 1.52%.

The market breadth was weak. On the NSE, 1059 shares rose and 2409 shares fell. A total of 113 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 9.51% to 17.06.

Buzzing Segment:

The Nifty Pharma index rose 1.11% to 27,915.25, extending its 30-day gain to 5.14%.

Sai Life Sciences led the gains, surging 12.25%, followed by Glenmark Pharmaceuticals (7.93%). Sun Pharmaceutical Industries advanced 2.03%, while Divi's Laboratories gained 0.71%. Other gainers included Zydus Lifesciences (0.88%), Aurobindo Pharma (0.78%), Mankind Pharma (0.79%), Biocon (0.70%) and Gland Pharma (0.70%).

On the losing side, Wockhardt declined 3.55%, while Laurus Labs fell 0.92%. Ipca Laboratories shed 0.57%, and Lupin slipped 0.16%.

Sai Life Sciences surged after reporting a strong performance for Q2 FY27, with consolidated net profit rising 17% YoY to Rs 98 crore. Consolidated net profit increased 34.2% QoQ from Rs 73 crore in Q1 FY27. Revenue from operations increased 22.7% YoY to Rs 659 crore in Q2 FY27 from Rs 537 crore in Q2 FY26. On a sequential basis, revenue rose 19.0% from Rs 554 crore in Q1 FY27.

Stocks in Spotlight:

Texmaco Rail & Engineering rose 0.96%. The company has received three orders aggregating Rs 428.55 crore from UltraTech Cement, Jujhar Logistics & Travels and APL Logistics Vascor Automotive.

Thermax tumbled 18.08% after the company reported a 4.28% year-on-year (YoY) decline in consolidated net profit to Rs 114.54 crore in Q2 FY27, compared with Rs 119.66 crore in the corresponding quarter of the previous fiscal year. However, revenue from operations increased 11.4% YoY to Rs 2,755.87 crore in the quarter ended 30 September 2026.

Global Markets:

Dow futures fell 562 points, signalling a weak opening for US stocks.

European equities opened sharply lower on Friday, tracking a global sell-off in AI-linked stocks that began on Wall Street and spread through Asia.

Asian market came under heavy selling pressure on Friday, as a sharp sell-off in US technology and semiconductor stocks spread across the region. Concerns over tighter regulation of artificial intelligence (AI) infrastructure and a potential slowdown in data-centre investments weighed on investor sentiment.

US market suffered their steepest sell-off in more than a year on Thursday, with technology and AI-linked stocks leading the decline. The S&P 500 tumbled 4.36% to 7,353.73, its biggest one-day fall since April 2025. The Dow Jones Industrial Average dropped 1,833 points, or 3.44%, to 51,523.06, while the Nasdaq Composite plunged 5.52% to 24,315.

The Nasdaq's decline pushed the index more than 10% below its October record, placing it in correction territory. The sell-off followed concerns that Democratic victories in the US midterm elections could lead to tighter scrutiny of data-centre construction and AI infrastructure spending. Investors also reassessed valuations of companies that had benefited from the AI investment boom.

Semiconductor stocks led the losses. Nvidia fell more than 9%, while Qualcomm dropped 9% after its fourth-quarter smartphone chip sales outlook missed estimates. Sandisk declined 22.3%, Lumentum lost 18.7% and Micron Technology fell 17.5%. AppLovin bucked the trend, rising around 31% after reporting stronger-than-expected quarterly profit.

Investors will focus on the US October employment report, scheduled for release on Friday. The data could influence expectations for the Federal Reserve's interest-rate trajectory.

Comments from Federal Reserve officials on inflation and interest rates will also remain in focus. Cleveland Fed President Beth Hammack said interest rates need to remain restrictive to bring inflation back to the central bank's target.

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