Indian markets open in red amid global slide, fed jitters

Indian markets opened lower on November 21, mirroring a global sell-off triggered by mounting concerns over stretched AI-related valuations. Sentiment also weakened after a mixed US jobs report offered little fresh incentive for the Federal Reserve to consider an early interest-rate cut.

At 9:15 a.m., the Sensex slipped 0.25 points, or 220 percent, to 85425, while the Nifty fell 71 points, or 0.28 percent, to 26115.

The tremors in Asia followed a sharp retreat on Wall Street. On Thursday, the S&P 500 dropped to its lowest level in more than two months, with Nvidia tumbling 3.2 percent despite its upbeat earnings forecast. The Nasdaq Composite fell 2.16 percent, reversing a 2.6 percent intraday surge, while the Dow Jones Industrial Average closed 0.84 percent lower.

Across the region, losses deepened. Japan’s Nikkei 225 slid 1.57 percent at the open, with the Topix down 0.72 percent. Hong Kong’s Hang Seng Index dropped 1.88 percent, and the Hang Seng Tech Index declined 2.33 percent. South Korea’s Kospi plunged 4.09 percent.

Investors in Asia also kept a close eye on Japan, where the government is expected to unveil a new stimulus package. The yen steadied after authorities issued their strongest warning yet to currency markets over recent sharp swings.

The rapid reversal in global market sentiment reflected persistent worries around elevated valuations and heavy tech spending, which overshadowed Nvidia’s strong guidance. Uncertainty over the Federal Reserve’s next move further added to the caution. Policymakers have signaled reluctance to cut rates prematurely, and the latest labor-market data — stronger job growth in September but rising unemployment — offered mixed signals.

Minutes from the Fed’s October meeting, released Wednesday, showed many officials leaning toward holding rates steady. Swap traders now assign only a 40 percent probability to a rate cut next month, down sharply from expectations just two weeks ago, according to Bloomberg report.