Indian Markets Resilience Stands Out as Sensex and Nifty Stay Firm Despite Wall Street Slump
Even as global markets, particularly Wall Street, grapple with volatility and sharp corrections, the Indian markets resilience theme has become increasingly evident. Over the past week, India’s benchmark indices have managed to climb consistently, with both the Sensex and Nifty staging a powerful rebound despite negative cues from global peers.
Between November 10 and November 17, the indices clocked a six-session gaining streak, rising more than 2 percent, even as the S&P 500 and Nasdaq saw a significant pullback. On November 19, Indian benchmarks added another 0.6%, reinforcing the view that domestic equities are in a phase where every dip is being bought.
Analysts point to four major pillars behind this unusual divergence:
✔ India emerging as an anti-AI play
✔ Strong valuation comfort
✔ Deep and consistent SIP inflows
✔ Robust macroeconomic fundamentals
India Emerges as an ‘Anti-AI Play’ as Global Tech Corrects Sharply
One of the most significant contributors to Indian markets resilience is the sharp correction in global AI-focused stocks. Wall Street giants like Nvidia, Microsoft, Amazon, Alphabet and Meta — which dominate the S&P 500 and Nasdaq — have corrected 10–20 percent in recent sessions. The selloff intensified after SoftBank sold $5.8 billion worth of Nvidia stock last week, sparking fears that the AI trade may have peaked.
Bajaj Broking highlighted that because these tech giants carry disproportionate weight in US indices, even a small decline drags down the broader market.
In contrast, India has no domestic AI-heavy listings.
“India’s IT sector, though globally competitive, is dominated by services firms like Infosys, TCS, Wipro and HCL Tech — not AI product companies. This structural distinction provides India with a natural buffer,” Bajaj Broking said.
This has turned India into what analysts are calling an “anti-AI play”, especially as global investors begin shifting money away from overheated AI stocks into more stable emerging markets.
VK Vijayakumar of Geojit said the ongoing trend is favourable for India:
“Nasdaq is down 1,526 points from peak levels. Concerns around AI valuations are rising. India’s outperformance versus South Korea and Taiwan reflects an early shift away from AI-heavy markets. FPIs may increase exposure to India if AI euphoria continues cooling.”
Also Read : Nifty Reclaims 26,000 as Sensex Jumps 513 Points in Market Rebound
Valuation Comfort Strengthens Indian Markets Resilience
Valuations have also played a significant role. Nifty touched an all-time high of 26,277 on September 27 last year before falling nearly 17%, slipping below 21,000 during the March–April period. Though the index has now recovered almost all of these losses, its one-year return remains negative.
This underperformance has kept Indian valuations attractive compared to global peers.
“The MSCI India Index has risen just 6% this year, far below the 20–35% returns seen in AI-driven markets. With fewer speculative gains priced in, there is less excess to unwind,” Bajaj Broking noted.
Wealth1 CEO Naren Agarwal added that India’s relative stability, strong earnings visibility and structural growth narrative make it more appealing than other emerging markets.
Ross Maxwell of VT Markets echoed this view:
“Earlier FIIs pulled funds from India into US tech, but that rotation is reversing. India’s reset in valuations is now attracting long-term foreign money.”
Strong SIP Inflows Offer a Powerful Cushion Against Global Volatility
A defining characteristic of Indian markets resilience is the rise of domestic investors. Robust SIP participation has transformed market behaviour, making India much less dependent on foreign capital.
Kalp Jain of INVasset PMS said:
“Steady SIP flows and high domestic liquidity have reduced sensitivity to abrupt global risk-off phases.”
Agarwal added that domestic retail investors are no longer reacting to every global headline:
“SIP flows are at all-time highs, banks are well-capitalised, and corporate earnings have been consistently strong. This gives India a market base that absorbs global shocks.”
Shravan Shetty of Primus Partners pointed out that over ₹6 lakh crore has flowed into domestic equity markets, offering extraordinary stability even when FIIs turned sellers earlier in the year.
Ravi Singh of Master Capital Services added:
“DIIs absorbed nearly all the FII selling in 2025. Retail flows through SIPs ensured markets didn’t fall sharply despite global turbulence.”
Strong Macroeconomic Indicators Reinforce India’s Stability
The fourth major pillar supporting Indian markets resilience is India’s strong macro environment. Analysts widely agree that India’s economic stability stands out at a time when major economies are battling recessionary pressures and higher interest rates.
Key indicators supporting resilience include:
Steady inflation at multi-year lows
Robust GDP growth
Improving manufacturing momentum
Healthy forex reserves
Government-driven capex cycle
Kalp Jain said consumption trends, urban spending and continued government expenditure act as buffers against global volatility.
Ross Maxwell highlighted that India’s macro reforms — GST, Insolvency Code, fiscal consolidation — have significantly strengthened structural resilience.
Ravi Singh added that India’s corporates reported double-digit profit growth in several sectors, including auto, banking and discretionary goods, supported by strong festival demand and GST reductions.
Conclusion: India Is Not Decoupled — It Is Simply More Balanced and Less Overheated
India’s divergence from Wall Street is not decoupling, analysts stress — it is a reflection of healthy economic fundamentals, balanced market composition and strong domestic participation.
As global markets adjust to an overheated AI cycle, India’s broad-based growth engine, stable valuations and massive SIP inflows have allowed it to outperform and maintain stability.
In short, the Indian markets resilience story remains intact — and may strengthen further if global AI valuations continue to cool.
