Stock markets around the world fell sharply overnight. The fall started on Wall Street and then spread across Asia.
Business Today reported on Friday morning that Sensex and Nifty are likely to open lower.
GIFT Nifty futures fell 168.50 points, or 0.68 per cent, to 22,775.
Key points
- US stocks had their steepest losses since the tariff-led rout of April 2025, one report said.
- South Korea's Kospi fell more than 8 per cent and triggered a circuit breaker.
- Japan's Nikkei 225 fell around 6 per cent.
- Brent crude rebounded towards $100 per barrel.
How deep was the fall on Wall Street?
The Nasdaq Composite fell 5.52 per cent, wiping out around a trillion dollars.
The S&P 500 dropped 4.35 per cent, and the Dow Jones Industrial Average fell 3.44 per cent.
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Graphic: News Anek, from the facts in this report
The Hindu BusinessLine reported a bigger Nasdaq fall of 6.4 per cent.
It said the Dow shed 1,833 points and called it the worst US stock rout since 2020.
The two reports differ on the scale of the fall.
The CBOE Volatility Index (VIX), a gauge of investor fear, rose nearly 70 per cent.
That points to heavy anxiety among investors.
Why did Asian markets fall too?
The selloff spread to Asia and hit technology and semiconductor stocks hard.
Investors worried that tighter US rules on artificial intelligence could hurt future growth.
There were also concerns about a possible slowdown in spending on AI infrastructure.
Chip makers came under the most pressure.
What does this mean for India?
So why does this matter for Indian investors? They are likely to stay cautious.
They will track global tech stocks, foreign investor flows and crude oil prices.
Crude oil matters too. Brent's rebound towards $100 per barrel has revived inflation worries.
That could affect India's import bill and company profits.
There was some relief after the overnight fall, as US equity futures recovered.
Whether the rebound lasts is not clear yet, and volatility is likely to stay high.
Explainer
What happened before
- US equities suffered their steepest losses since the tariff-led market rout of April 2025, Business Today reported.
- Brent crude rebounded towards $100 per barrel, reviving inflation concerns for India's import bill and corporate margins.
- Investors worried that tighter US rules on artificial intelligence and a slowdown in AI infrastructure spending could hurt future growth.
Why it matters
Indian investors are tracking global tech stocks, foreign investor flows and crude oil prices. Crude prices also affect India's import bill and company margins.
What to watch next
- Investors will watch whether the US rebound gathers momentum, as volatility is likely to stay elevated.
