Indian equity benchmarks Sensex and Nifty are anticipated to commence trading lower on Friday, November 6, 2026, following a substantial global market selloff that originated on Wall Street and subsequently impacted Asian markets. The negative sentiment is largely driven by steep losses in technology and semiconductor sectors.
Wall Street Experiences Steepest Decline Since 2025
Global investor confidence weakened considerably after US equities recorded their most significant losses since the tariff-driven market downturn in April 2025. The Nasdaq Composite, heavily weighted with technology stocks, plummeted by 5.52%. The S&P 500 index saw a 4.35% decline, while the Dow Jones Industrial Average fell by 3.44%. This widespread selling pressure led to the CBOE Volatility Index (VIX) surging nearly 70%, indicating a sharp increase in investor anxiety and market uncertainty.
Asian Bourses Follow Suit with Significant Drops
The selloff quickly extended to Asian markets. South Korea's Kospi index experienced a dramatic fall of over 8%, triggering a circuit breaker designed to halt trading temporarily during extreme volatility. Japan's Nikkei 225 also saw a substantial drop of approximately 6%. Semiconductor companies, in particular, faced intense pressure amid growing concerns. These worries stem from potential tighter US regulatory measures concerning artificial intelligence and a possible slowdown in AI infrastructure spending, which could adversely affect future growth prospects and valuations within the sector.
Implications for Indian Markets and Investor Outlook
For Indian markets, investors are expected to maintain a cautious stance. Key factors influencing sentiment include the performance of global technology stocks, the flow of foreign institutional investments (FIIs), and fluctuations in crude oil prices. A rebound in Brent crude towards $100 per barrel has reignited inflation concerns, posing potential challenges for India's import bill and corporate profit margins. While a modest recovery in US equity futures offered some relief after the overnight declines, market participants will be closely monitoring whether this rebound gains momentum or if global risk aversion persists. Given the fragile external environment, elevated volatility is likely to continue, with stock-specific actions and selective buying potentially outweighing broad-based market gains.