Global Equity Selloff Weighs On Indian Markets As Tech Concerns Resurface

Asian equity markets are poised to extend losses on Friday, with Indian shares set to follow their global counterparts into negative territory. The selloff reflects renewed anxieties about overvalued technology stocks and mounting questions about whether artificial intelligence investments will deliver adequate returns.

Mixed Signals From U.S. Labor Data Trigger Uncertainty

A disappointing employment report from the United States has reignited debate over the Federal Reserve’s monetary policy stance heading into December. September payroll additions came in at just 119,000 compared to economist expectations of 50,000, while the prior month’s figures were revised downward to a loss of 4,000 jobs. The unemployment rate ticked higher to 4.4 percent, marking its highest point since 2021 and fueling speculation about economic momentum.

This weaker-than-anticipated labor market data overshadowed the positive sentiment generated by Nvidia’s strong quarterly performance. U.S. benchmarks surrendered early morning gains to finish sharply lower, with the Nasdaq Composite declining 2.2 percent and the S&P 500 dropping 1.6 percent—both hitting two-month lows. The Dow Jones fell 0.8 percent to reach a fresh one-month low.

India’s Equities Consolidate Near Record Highs

Despite the global selloff pressure, Indian benchmarks Sensex and Nifty managed gains of approximately 0.5 percent each on Thursday, holding near all-time peaks. The resilience was supported by improved flows from international portfolio managers and optimism surrounding Nvidia’s earnings surprise.

On the currency front, the Indian rupee weakened modestly to 88.70 per U.S. dollar. Reserve Bank Governor Sanjay Malhotra attributed the depreciation trend to trade policy uncertainties rather than fundamental economic concerns. According to the RBI chief, tariff-related tensions and global trade dynamics have placed pressure on India’s current account dynamics. He suggested that a constructive trade agreement between the U.S. and India could alleviate these pressures and support the rupee’s exchange value.

Capital flows painted a mixed picture Thursday. Foreign investors net purchased equities valued at Rs 284 crore, while domestic institutional players accumulated shares worth Rs 824 crore.

Europe Stabilizes Amid Tech Recovery

European markets snapped a five-day losing streak with modest gains, as Nvidia’s optimistic quarterly guidance and forward-looking commentary eased concerns about the technology sector’s valuation sustainability. The pan-European Stoxx 600 rose 0.4 percent, with the German DAX advancing 0.5 percent, France’s CAC 40 adding 0.3 percent, and the U.K.'s FTSE 100 edging 0.2 percent higher.

Commodity And Currency Markets Reflect Shifting Risk Sentiment

Geopolitical tensions between Russia and Ukraine have moderated, prompting crude oil prices to decline. Gold, meanwhile, is positioned for a marginal weekly loss as investors reassess their safe-haven positioning. The U.S. dollar consolidated weekly gains amid the broader rotation away from risk assets.

Markets will face a critical juncture as Friday unfolds, with Indian equities set to test support levels if selling pressure extends from global peers.