Indian Shares Rally As Asia's AI Trade Cracks
(RTTNews) - Indian shares rallied on Friday, with expectations around an upcoming MSCI Index rebalancing and the cooling of Asia's AI chip rally boosting sentiment.
Investors are pinning hopes that an upcoming MSCI index rejig, which could add up to 12 stocks, may trigger about $2.3 billion in passive investment flows.
Meanwhile, AI-heavy markets in South Korea and Taiwan have come under intense selling pressure in recent sessions due to concerns over possible overcapacity in AI infrastructure.
The sharp selloff has reignited questions over stretched AI valuations and sparked debate over whether global capital will gravitate towards Indian IT companies, which are seen as beneficiaries of enterprise AI spending without being exposed to the capital-intensive risks of semiconductor manufacturing.
The benchmark 30-share BSE Sensex jumped 964.59 points, or 1.25 percent, to 78,151.45 despite weak cues from global markets and surging oil prices amid escalating tensions in the Middle East.
The NSE Nifty index soared 261.55 points, or 1.09 percent, to 24,334.30 while the BSE mid-cap and small-cap indexes slipped 0.2 percent and 0.8 percent, respectively.
The market breadth was weak on the BSE, with 2,491 shares falling while 1,731 shares advanced and 190 shares closed unchanged.
Among the top gainers, Tech Mahindra surged nearly 4 percent after posting strong Q1 earnings, with quarterly consolidated profit rising 28.4 percent year-on-year.
Bajaj Finance, ICICI Bank, Axis Bank, Mahindra & Mahindra, Hindustan Unilever, Reliance Industries, TCS and Kotak Mahindra Bank climbed 2-3 percent.
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