Indian Indices Slip as AI Valuation Worries Intensify; Volatility Gauge Jumps

Indian stock markets weakened on Friday, tracking global cues. Valuation concerns surrounding major technology stocks and expectations of possible U.S. rate hikes dampened investor sentiment. Despite the cautious tone, analysts believe the Nifty could still push toward fresh record levels. Foreign investors remained net sellers, while domestic institutions continued to provide support. Markets are also awaiting updates on the U.S.–India trade agreement.

India’s benchmark indices slipped 0.5% on Friday, reflecting the overnight slump on Wall Street as worries over stretched tech valuations outweighed Nvidia’s strong earnings.
The NSE Nifty closed at 26,068, down 124 points, while the BSE Sensex ended at 85,231, down 400 points. For the week, the Nifty gained 0.6% and the Sensex rose 0.8%, after both indices nearly touched new highs on Thursday.

Foreign portfolio investors offloaded shares worth ₹1,766 crore, whereas domestic investors bought ₹3,161 crore worth of equities.