Indian shares open higher on IT gains as AI stock sell-off weighs globally

what happened

Indian shares opened higher on Friday after three sessions of decline, with IT companies leading gains amid a rout in global stocks tied to artificial intelligence. Rising oil prices capped the rally as tensions in the Middle East escalated. According to Reuters, at 9:19 a.m. IST the Nifty 50 gained 0.16% to 22,726, while the Sensex added 0.53% to 73,634.08.

The benchmarks had lost about 2% over the previous three sessions. Sentiment was also dented by Brent crude futures, which climbed to $113.5 a barrel on concerns about further energy disruption after Houthi attacks on Saudi Arabia, the top oil exporter. Eleven of the 16 major sectors posted losses. Small-caps and mid-caps fell 0.7% and 0.3%, while the IT index jumped 3%.

why it matters

The sharp rise in Brent adds inflation pressure for oil-importing economies such as India and keeps markets sensitive to Middle East headlines. The divergence between IT gains and the tech sell-off in Asia, following a drop of more than 2% in the Nasdaq Composite overnight, shows investors sorting stocks within technology. Meta's first cash outflow in more than a decade, caused by AI spending, and the nearly 8% drop in its shares raise questions about returns on such investment.

market impact

Indian equities and oil: Middle East escalation pushes Brent higher, pressuring energy-importing markets.

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