In the quiet hours before Thursday's opening bell, Indian markets found themselves carried forward by two currents converging from opposite directions: the rekindled promise of artificial intelligence, voiced through a semiconductor company's earnings, and the easing of geopolitical tension that had kept oil prices elevated. Together, these forces reminded investors that confidence, once lost, can return swiftly — and that global markets remain deeply interconnected, where a chip forecast in America can brighten a trading floor in Mumbai by morning.
AI optimism and cheaper crude lift Indian markets for positive open
Micron's forecast gave people permission to believe the spending cycle isn't over
Mark
So the story here is that Micron's earnings forecast basically reset the mood for the entire region overnight?
Mimi
Not just Micron—it was Micron plus Qualcomm, both signaling that AI infrastructure spending is still robust. That mattered because tech stocks had been under pressure. The forecast gave people permission to believe the spending cycle isn't over.
Luke
But Wall Street itself was mixed that day. The Nasdaq Composite actually fell. So we're saying after-hours trading by a subset of investors moved the entire Asian market the next morning?
Mimi
That's what the data shows. The after-hours surge in semiconductor stocks was sharp enough to shift futures, and futures moved Asia. It's how markets work now—the signal travels fast.
Mark
And crude oil falling to $73—that's a separate tailwind, right? Not connected to the AI story?
Mimi
Completely separate. It's the US-Iran peace process normalizing traffic through the Strait of Hormuz. For India specifically, that matters because it reduces import costs and inflation pressure.
Luke
The source says oil "erased virtually all of the gains recorded during the recent Middle East conflict." Do we know how much that conflict had pushed prices up in the first place?
Mimi
The source doesn't specify. We know it's back to pre-conflict levels, but the magnitude of the spike isn't quantified.
Mark
Foreign investors were actually selling on June 24, though. Domestic investors were buying. Does that change the picture?
Mimi
It complicates it. The domestic support was real—Rs 3,637 crore in buying. But foreign investors pulled Rs 1,843 crore. So the rally wasn't unanimous.
Luke
And we don't know if that foreign selling continued into Thursday or reversed. The source only covers June 24.
Mark
What's the risk if the Nifty breaks below 23,800?
Mimi
That triggers profit booking—people locking in gains. It would suggest the momentum doesn't have staying power.
Luke
But that's a technical call, not a fundamental one. The AI spending and lower oil prices are still real either way.
Mark
So we're watching to see if this holds, or if it's just a bounce.
Mimi
Exactly. The setup is supportive, but execution matters.
O Pulso
- Micron Technology's blowout AI chip forecast sent semiconductor stocks surging after hours, with Micron itself jumping 12% and Nasdaq futures climbing 1.7%, reigniting faith in the AI infrastructure story that had recently wobbled.
- Crude oil's slide to $73 per barrel — erasing nearly all gains from the recent Middle East conflict — removed a persistent inflation threat hanging over India's import-heavy economy.
- Asian markets responded unevenly: South Korea's Kospi leapt roughly 6% and Japan's Topix gained 1.3%, while Hong Kong and mainland China traded lower, signaling a rally with real but uneven footing.
- Domestic institutional investors cushioned any foreign selling pressure, pouring Rs 3,637 crore into Indian equities even as foreign institutions pulled out Rs 1,843 crore — a tug-of-war that domestic money is currently winning.
- GIFT Nifty's 83-point pre-market gain pointed to a firm open, but technical analysts warned that the 24,100-24,200 resistance band would be the morning's true test of whether overnight optimism could hold into sustained momentum.
In the quiet hours before Thursday's opening bell, Indian markets found themselves carried forward by two currents converging from opposite directions: the rekindled promise of artificial intelligence, voiced through a semiconductor company's earnings, and the easing of geopolitical tension that had kept oil prices elevated. Together, these forces reminded investors that confidence, once lost, can return swiftly — and that global markets remain deeply interconnected, where a chip forecast in America can brighten a trading floor in Mumbai by morning.
Indian stock markets were positioned for a positive Thursday open, carried by a wave of overnight optimism that had swept through Asian trading. The catalyst was dual: a semiconductor giant's earnings had reaffirmed the world's appetite for AI infrastructure, and crude oil had fallen far enough to ease India's inflation concerns. GIFT Nifty was trading up 83 points, or 0.35%, around 7:55 am, signaling a firm start after Wednesday's already strong session.
The previous day had set a constructive tone. The Sensex climbed over 790 points to close near 76,991, while the Nifty finished above the psychologically important 24,000 mark. Buying had been broad — IT, banking, and real estate all participated — but the real shift came after Wall Street's close, when Micron Technology's revenue forecast arrived well above expectations. Qualcomm added to the mood with optimistic projections for its data centre business. Micron surged 12% in after-hours trading; Western Digital, Sandisk, and Seagate each gained more than 8%. Nasdaq futures climbed 1.7%, transforming what had been a cautious Wall Street session into something more energetic.
The enthusiasm moved east by morning. South Korea's Kospi jumped around 6%, Japan's Topix rose 1.3%, and the MSCI Asia Pacific Index climbed 1.4%. Hong Kong and mainland China, however, traded lower — a reminder that the rally carried its own limits. Meanwhile, Brent crude fell to around $73 per barrel as progress in the US-Iran peace process normalized traffic through the Strait of Hormuz, effectively unwinding the oil price spike that had accompanied the recent conflict.
Institutional flows told a nuanced story: foreign investors sold roughly Rs 1,843 crore worth of Indian equities on June 24, but domestic institutions more than offset that with Rs 3,637 crore in purchases. Technically, the Nifty faced immediate resistance between 24,100 and 24,200; a clean break above that band could open the path toward 24,400-24,600, while a fall below 23,800 would likely invite profit-taking. The morning's opening would determine whether the overnight tide had truly turned.
Indian stock markets were set to open on the upside Thursday morning, riding a wave of optimism that had swept through Asian trading floors overnight. The trigger was straightforward: a semiconductor company's better-than-expected earnings guidance had rekindled confidence in artificial intelligence spending, and crude oil prices had fallen far enough to ease concerns about inflation and India's import bill. GIFT Nifty, the early indicator of how the domestic benchmark would perform, was trading at 24,106 around 7:55 am—up 83 points, or 0.35 percent—suggesting a firm start after the previous session's strong rebound.
The setup had been building since Wednesday. On June 24, the Sensex had climbed 790.54 points, or 1.04 percent, to close at 76,991.22, while the Nifty rose 197.55 points, or 0.83 percent, finishing above the 24,000 mark at 24,021.65. That recovery had been broad-based, with buying across information technology, banking, and real estate stocks, supported by easing worries about disruptions to global oil supplies. But the real momentum came after the closing bell on Wall Street.
Micron Technology's quarterly revenue forecast—well above what analysts had expected—signaled that demand for artificial intelligence-related memory chips remained robust. Qualcomm added to the optimism by projecting strong long-term growth in its data centre business. These two announcements were enough to trigger a sharp rally in semiconductor stocks in after-hours trading. Micron surged about 12 percent. Western Digital, Sandisk, and Seagate each gained more than 8 percent. Arm Holdings, Broadcom, Marvell, Applied Materials, and ASML all advanced strongly. Nasdaq futures climbed about 1.7 percent, while S&P 500 futures gained 0.5 percent. The broader mood on Wall Street itself had been mixed—the Dow Jones Industrial Average rose 0.35 percent, but the S&P 500 slipped 0.10 percent and the Nasdaq Composite lost 0.43 percent as investors remained cautious about elevated technology valuations and the outlook for US interest rates—but the after-hours surge had shifted the tone entirely.
The positive momentum spilled into Asia on Thursday. South Korea's Kospi jumped around 6 percent. Japan's Topix rose 1.3 percent. The broader MSCI Asia Pacific Index climbed 1.4 percent. Hong Kong and mainland Chinese markets, however, traded lower, suggesting the rally was not universal. Crude oil prices continued their slide, adding another layer of support. Brent crude fell to around $73 per barrel, while US West Texas Intermediate traded near $70 per barrel. The decline reflected progress in the US-Iran peace process, which had allowed traffic through the Strait of Hormuz to normalize. Oil had now erased virtually all of the gains it had recorded during the recent Middle East conflict, easing concerns over inflation and India's import bill—a meaningful shift for an economy that imports most of its energy.
Ponmudi R, CEO of Enrich Money, framed the setup clearly: improving global risk appetite and lower oil prices were likely to support Indian equities. The better-than-expected earnings and optimistic guidance from Micron Technology had reinforced confidence in the outlook for artificial intelligence and semiconductor-related spending, helping ease concerns that had recently weighed on global technology stocks. Institutional flows remained mixed. Foreign institutional investors sold equities worth Rs 1,843 crore on June 24, but domestic institutional investors extended their buying streak with purchases worth Rs 3,637 crore, continuing to provide support.
From a technical perspective, the Nifty remained constructive. Immediate resistance sat at 24,100-24,200. A sustained breakout above that zone could lift the index towards 24,400-24,600. On the downside, 24,000 remained the key support level, followed by the 23,900-23,800 zone. A break below 23,800 would likely trigger profit booking. The morning's opening would test whether the overnight momentum could hold.
Citações Notáveis
Better-than-expected earnings and optimistic guidance from Micron Technology have reinforced confidence in the outlook for artificial intelligence and semiconductor-related spending, helping ease concerns that had recently weighed on global technology stocks.— Ponmudi R, CEO of Enrich Money
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Leia o original em Moneycontrol ↗
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