Indian Shares Likely To Open On Cautious Note As Tech Rally Fades

(RTTNews) - Indian shares are seen opening on a cautious note Friday as a global tech rally stalled amid concerns about excessive levels of investment across the AI space and doubts about the pace of returns from those investments.

On the geopolitical front, Iran and the United States have concluded a third round of nuclear talks in Geneva on Thursday, with no breakthrough yet to avert potential U.S. military action in the region.

According to an official statement, significant progress had been achieved and both sides are planning to resume negotiations shortly following consultations in their respective capitals.

Benchmark indexes Sensex and Nifty ended a choppy session narrowly mixed on Thursday due to U.S. trade policy concerns and fears over a potential military conflict in the Middle East region.

The rupee closed marginally higher at 90.90 against the dollar, driven by strength in regional currencies.

Foreign investors net sold shares worth Rs 3,466 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs 5,032 crore, according to provisional exchange data.

Asian markets were mixed this morning, with tech stocks coming under selling pressure following a steep fall in Nvidia shares overnight.

The dollar index was marginally lower and gold held steady at $5,188 an ounce, while oil edged lower on reports that the United States and Iran will continue indirect nuclear negotiations next week.

U.S. stocks ended mostly lower overnight as concerns over a potential artificial intelligence (AI) bubble overshadowed Nvidia's strong earnings results and upbeat guidance.

In economic news, data showed the number of Americans filing new applications for jobless benefits increased slightly last week.

The tech-heavy Nasdaq Composite fell 1.2 percent and the S&P 500 shed half a percent while the narrower Dow finished marginally higher.

European stocks rose broadly on Thursday amid a flurry of corporate earnings releases.

The pan-European STOXX 600 finished marginally lower. The German DAX rose half a percent, France's CAC 40 surged 0.7 percent and the U.K.'s FTSE 100 added 0.4 percent.