Kospi Fell 7.57%, Nikkei 4.9%: Why Did Nifty Still Open Higher at 22,671?

Quick take: Asia had a brutal Thursday. South Korea’s Kospi closed down 7.57% and Japan’s Nikkei 225 fell 4.90% after a hot US inflation print rattled AI and chip stocks. India did not escape the global nerves, but the Nifty 50 still opened higher at 22,671.30. Why the gap, and does it last?

What happened in Asia

According to TradingKey, the Kospi touched an intraday loss of about 9% and triggered a 20-minute trading halt, the tenth circuit breaker of the year. Samsung Electronics fell 9.48%, SK Hynix 11.06% and SoftBank Group 9.33%. The stated trigger: US September CPI came in above expectations, reviving fears of another Federal Reserve rate hike, while the Nasdaq dropped 1.88% overnight as AI infrastructure names sold off. Higher rates raise the cost of financing data centres, which is what worried investors.

What happened in India

India TV reported that the Sensex opened up 183.91 points (0.25%) at 72,965.80, from a previous close of 72,781.89, while the Nifty 50 rose 48.60 points to 22,671.30 from 22,622.70. Breadth was mixed in early trade: 1,188 NSE stocks declined against 1,106 advancing. The BSE Smallcap Select index slipped 0.19% to 8,995.66.

The lift came from IT. TCS led Sensex gainers at +2.26%, with HCL Tech, Tech Mahindra and M&M also higher. On the losing side were Sun Pharma (-1.08%), Power Grid, Bajaj Finance, IndiGo and NTPC. In other words, the index was held up by a handful of heavyweights while the broader market was closer to split.

Why India looked different

One plausible reading is composition. Korea’s and Japan’s indices carry heavy chip and AI-hardware weights, which is exactly where the sell-off landed. India’s large-cap IT names are services businesses, and several were in focus for their own earnings, with Wipro and Tech Mahindra reporting Q2 results this week. The rupee also extended its winning streak, per India TV. This is an interpretation, not a confirmed cause, and the opening gap can narrow or widen as the session develops.

Key levels and numbers

Going into the session, The Sunday Guardian listed Nifty support at 22,600 and 22,500, with resistance at 22,700 and 22,800. For Bank Nifty (previous close 55,316), support sat at 55,200 and 55,000, with resistance at 55,500 and 56,000. India VIX closed the prior session at 14.63, up 3.61%. Foreign investors sold equities worth Rs 1,305.13 crore in the previous reported session; that article gave no DII figure.

What to watch next

Whether the Nifty closes above the 22,600 to 22,700 zone, which the opening print sat right on top of.
Today’s FII and DII flow data, to see if foreign selling continued or eased.
Follow-through in the Asian chip names on Friday, and any further US inflation or Treasury yield surprises.
Crude oil: the Sunday Guardian flagged prices above $100 a barrel as a risk for India’s import bill and inflation.

Note: Indian index figures above are from the opening session and previous close as reported; final closing levels may differ.

Sources

Disclaimer: This post is for educational and informational purposes only and is not investment advice. Consult a SEBI-registered advisor before investing.

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