Mumbai (Maharashtra) [India], December 18 (ANI): Domestic stock markets opened on a cautious note on Thursday, tracking sharp overnight losses in the US markets, as investors booked profits in high-valuation technology and artificial intelligence (AI) stocks.

Weak global cues weighed on investor sentiment, leading to early selling pressure across most sectors.

The Nifty 50 index opened at 25,772.70, down by 45.85 points or 0.18 per cent, while the BSE Sensex started the day at 84,518.33, slipping 41.32 points or 0.05 per cent.

Market participants remained cautious as global indices witnessed renewed selling pressure following the recent correction in US markets.

Experts said that the sell-off in US equities has now started impacting global markets, including India. The US markets extended their losing streak overnight, mainly due to profit booking in technology and AI-related stocks, which had earlier seen sharp rallies.

Ajay Bagga, Banking and Market expert, told ANI, 'Global markets are seeing a tech stock risk off. US markets fell on Wednesday and Asian markets are following the US lead this morning. AI models and huge capex by AI hyperscalers is being questioned for sustainability and returns on investments. With a lack of revenue traction, AI models have come under a selling cloud. Indian markets have underperformed significantly, with a weak rupee, FPI outflows, weak FDI inflows and fragile sentiment around the punitive US tariffs impacting markets negatively.'

The weakness was also visible in the broader market indices. On the NSE, the Nifty 100 declined by 0.15 per cent, the Nifty Midcap 100 slipped 0.10 per cent, while the Nifty Smallcap 100 was down by 0.13 per cent, reflecting cautious sentiment across the broader market.

On the sectoral front, most indices traded in the red. Except for Nifty IT, which gained more than 1 per cent, all other sectors came under pressure. Nifty Auto lost more than 1 per cent, Nifty Pharma declined 0.66 per cent, Nifty FMCG slipped 0.11 per cent, Nifty Media fell 0.41 per cent, and Nifty Realty was down by 0.53 per cent.

Ponmudi R, CEO of Enrich Money, stated, 'Nifty 50 continues to trade within a rising channel structure. The 25,800-25,700 zone remains a critical near-term support and a decision-making area. As long as this base holds, the broader uptrend stays intact despite near-term volatility and global weakness. However, if selling intensifies, especially through long unwinding, a deeper corrective move toward the 25,500-25,400 zone cannot be ruled out.'

Four European central banks meet on Thursday. As per experts, BOE (Bank of England) is expected to cut rates by a quarter point while the European Central Bank (ECB), Norges Bank and Riksbank are expected to hold rates steady.

Global markets remained weak as concerns over returns from AI capital expenditure, reports of funding pullbacks in data centre investments, and a shift towards defensive sectors have strengthened the risk-off mood.

Other Asian markets also opened weak, mirroring the subdued tone on Wall Street after several sessions of sustained selling. (ANI)