Indian markets extend gains for 3rd straight week despite Nvidia crisis

Despite an action-packed week in the global markets, which were rattled by the Jensen Huang controversy, Indian markets remained resilient before losing on Friday.

India has traditionally been considered to be an anti-artificial intelligence (AI) bet, and the new developments will more likely affect further investments in AI.

Indian equity benchmarks ended higher for the third consecutive week, although gains remained modest amid signs of an overheated market and the possibility of near-term consolidation. Analysts maintained a positive outlook, recommending that investors continue accumulating quality largecap stocks on dips.

The Nifty 50 declined 0.61 per cent, or 155.05 points, on Friday to close at 25,144.3, while the Sensex fell 0.39 per cent, or 318.56 points, to end at 81,592.45. On a weekly basis, the Nifty 50 and Sensex gained 0.46 per cent and 0.7 per cent, respectively.

Broader markets underperformed on Friday, with the Nifty Midcap 150 declining 0.35 per cent, and the Nifty Smallcap 250 falling 0.3 per cent.

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Meanwhile, Brent crude oil December futures stood at $96.4 a barrel on Friday evening, compared with $98.3 a barrel a week ago.

Despite concerns over global developments, including the fall in Nvidia stock, analysts believe the impact on domestic equities will remain limited.

Because the Nifty 50 has demonstrated the ability to generate higher profit growth, foreign investors are more likely to chase that growth than look for an anti-AI trade, which operated on a Huang premium that has simply vanished. Foreign money looked at India as a hedge against AI stocks, but that story is now deflated. Although Nvidia accounted for a large chunk of the chip market, the stock is down 30 per cent today from its 52-week high of $243.47 in early October 2026. Its forward price-to-earnings (PE) multiple is at 11x and that might just make the stock attractive for anybody who wanted to bet against AI.

Lokesh Manik, senior analyst at Vallum Capital, said: “Regarding Nvidia, we see limited read-across. India’s low AI exposure and strong foreign buying drove the recent rally, and the reaction on Friday—the first session after the chief executive officer’s (CEO’s) exit—was contained at about -0.6 per cent for the Nifty.”

Manik added: “For next week, we expect India to stay resilient, with banks and financials leading and foreign buying remaining supportive.”

From a technical perspective, Ashish Katwa, technical analyst at BP Wealth (Stoxbox), said the Nifty continues to hold above its previous swing high, indicating strong bullish dominance. However, nearly 90 per cent of Nifty 50 stocks are trading above their 20-day simple moving average (SMA), suggesting an overbought market.

“Historically, such elevated breadth levels have often been followed by some consolidation or a cooling-off phase in the market. The overall bias remains positive,” Katwa said.

He said 24,700-24,800 would be potential buying levels, with 24,450 as the key support, while upside targets are placed at 25,400 and 25,700.

Asian markets were mixed, with Japan gaining 0.53 per cent and Taiwan rising 1.35 per cent. South Korea declined 0.98 per cent, China fell 0.59 per cent, and Hong Kong dropped 1.55 per cent.

Domestic volatility eased considerably over the week. The Nifty India VIX declined 5.06 per cent to 15.78 on Friday, marking a 14 per cent fall over the past five sessions.