Sensex jumps 1,002 points at open despite Asia-wide selloff; Reliance surges 5.43%

The stock market saw sharp swings on Monday, November 2, the first trading day of the month. Markets across Asia were under selling pressure and most were in the red. The reason given was a steep fall in technology stocks in the United States.

The Nasdaq 100 in the US had dropped a full 3.5% on Friday. AI-linked shares were sold heavily, and the effect was visible in Asia today.

Investors worldwide are now anxious. AI stocks had risen sharply, so there is a fear that the bubble could burst, and that fear set off panic selling. This morning Japan's Nikkei fell 0.39% and the Topix slipped 0.51%. South Korea's Kospi dropped 1.06%. The MSCI Asia Pacific index was also down 0.5%. Only Hong Kong's Hang Seng futures were higher, up 0.2%, while selling dominated everywhere else.

For the past few days one concern has dominated. Big tech companies are spending thousands of crores of rupees on AI, but their core businesses are slowing. Investors are asking how the spending will pay off.

Results from Alphabet and Amazon last week unsettled investors further. There is a worry that AI itself could weaken these companies' earnings. As a result, everyone is in a wait-and-watch mode, and no one is willing to put fresh money into tech.

Amid the declines across Asia, the mood in Indian markets was different. The market jumped sharply at the opening. GIFT Nifty had already signalled a gain of 200 points. At the open, the Sensex rose 1,002 points, or 1.35%, to 75,462. The Nifty also gained 266 points to 23,319.

Reliance led the rally. After its quarterly results last week, the Reliance share rose 5.43% to Rs 1,228. So while the US selloff affected Asia, India held its ground. Investors are now watching what happens in the US tomorrow.