Indian stock market benchmarks Sensex and Nifty 50 are poised for a strong opening on Thursday, riding the wave of global market optimism triggered by Nvidia's blockbuster earnings that ignited a worldwide rally in artificial intelligence and chip stocks.
Global Markets Rally Behind Nvidia
Asian markets displayed robust performance during early trading sessions, with Japan's Nikkei 225 index surging an impressive 3.4% to reclaim the significant 50,000 level. The broader Topix index followed suit with a solid 1.67% gain. South Korea's markets joined the upward trend, with the Kospi index rallying 2.23% and the Kosdaq advancing 1.75%.
The positive sentiment extended to Indian market indicators, where Gift Nifty was trading around the 26,145 level, representing a premium of nearly 74 points from Nifty futures' previous close. This significant premium strongly indicates a positive commencement for Indian stock market indices when trading begins.
Wall Street Sets the Stage
US stock markets concluded Wednesday's choppy session in positive territory, primarily driven by technology stocks ahead of Nvidia's crucial earnings announcement. The Dow Jones Industrial Average edged up 47.03 points, or 0.10%, to settle at 46,138.77, while the S&P 500 gained 24.84 points, or 0.38%, reaching 6,642.16. The technology-heavy Nasdaq Composite demonstrated the strongest performance, climbing 131.38 points, or 0.59%, to close at 22,564.23.
Nvidia emerged as the star performer, with its share price rallying more than 5% in extended trading after ending the regular session with a 2.8% gain. This surge positioned the company to add a staggering $220 billion to its market value, underscoring the massive investor confidence in the AI sector.
Nvidia's Spectacular Earnings Performance
The AI market leader reported extraordinary third-quarter results that exceeded market expectations. Nvidia announced a profit of $31.9 billion, equivalent to $1.30 per share, for the fiscal third quarter ending October 2025. This represents a remarkable 65% increase compared to the same period last year.
The company's sales revenue witnessed an impressive 62% climb, reaching $57 billion. Even more encouraging for investors, Nvidia provided strong guidance for the fourth quarter, projecting sales of $65 billion, plus or minus 2%. This forecast comfortably surpasses analysts' average estimate of $61.66 billion.
The company expects an adjusted gross margin of 75% for the coming period, plus or minus 50 basis points, indicating continued strong profitability in its operations.
Domestic Market Context and Expert Outlook
On Wednesday, Indian stock markets concluded the trading day with substantial gains, driven primarily by select index heavyweights. The benchmark Nifty 50 successfully reclaimed the psychologically important 26,000 level, closing at 26,052.65 after gaining 142.60 points, or 0.55%.
The Sensex demonstrated even stronger performance, rallying 513.45 points, or 0.61%, to settle at 85,186.47. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, provided valuable insights into market expectations, stating, "We expect the market to witness gradual up-move with a cautious undertone as the global macro data unfolds and the market awaits the conclusion of the first phase of the India-US trade deal."
Global Economic Indicators
Federal Reserve minutes revealed that a majority of US policymakers supported further interest rate cuts, though not all committed to implementing reductions at their December meeting. The minutes indicated significant divisions among officials, with many suggesting that keeping rates unchanged for the remainder of the year "would likely be appropriate."
In positive economic news, the US trade deficit showed substantial improvement, shrinking by nearly 24% to $59.6 billion in August from $78.2 billion in July. This improvement stemmed from a 5% drop in imports of goods and services to $340.4 billion, while US exports demonstrated resilience with a 0.1% increase to $280.8 billion.
Meanwhile, China maintained its benchmark lending rates unchanged for the sixth consecutive month in November, aligning with market expectations. The People's Bank of China kept the one-year loan prime rate at 3.0% and the five-year LPR unchanged at 3.5%.
Commodities and Currency Movements
Gold prices extended their recovery, rising 0.8% to $4,109.12 an ounce, indicating sustained demand for the precious metal despite recent fluctuations. Crude oil markets also showed positive momentum, with Brent crude oil rising 0.38% to $63.73 per barrel and US West Texas Intermediate crude futures gaining 0.39% to $59.67.
In currency markets, Japanese government bonds continued their downward trend, pushing benchmark yields to a 17-year high. The 10-year JGB yield increased 3 basis points to 1.795%, briefly touching 1.8% earlier in the session—its highest level since June 2008. The yen traded near a 10-month low against the dollar and reached a record low versus the euro.
Market participants remain cautiously optimistic as global cues continue to influence trading sentiment, with particular attention on the ongoing developments in artificial intelligence and semiconductor sectors that have demonstrated remarkable growth momentum.
