Nifty 50 Index Avoids Sharp Decline in Asian Markets

The Indian stock index Nifty 50 on November 4, 2026, avoided a sharp decline amid sell-offs on other Asian exchanges. In the first half of trading, the index hovered around the previous closing level, while stock indices in Japan, South Korea, and Taiwan faced significant pressure.

According to BeInCrypto, at one point during trading, Nifty 50 reached 23,850.35 points, adding 0.17%. At the same time, Japan's Nikkei 225 lost up to 4.05%, South Korea's KOSPI fell by 3.29%, and Taiwan's TAIEX decreased by 3.11%.

However, the dynamics of the Indian market remained unstable. According to Reuters, by 10:28 local time, Nifty 50 was at 23,830.6 points, adding 0.1%, and later briefly moved to a decline.

One explanation for the relative stability of Indian stocks is the structure of the national stock market. Unlike Japan, South Korea, and Taiwan, the Indian index is less dependent on semiconductor and artificial intelligence equipment manufacturers.

Capital return supported Indian stocks

On the previous day, November 3, Nifty 50 rose by 1.58% to 23,810.85 points, reaching the highest closing level in about two months. The growth continued for the fourth consecutive trading session and was accompanied by improved investor expectations regarding corporate results and tax policy.

According to Bloomberg, in the last two weeks of October, foreign funds purchased Indian stocks with a net value of about $2 billion. Reuters also reported that in early November, foreign investors additionally directed $821 million to the Indian market.

However, throughout 2026, there was a significant net outflow of capital. As of November 4, it amounted to about $30.59 billion, so recent purchases have not yet compensated for previous sales.

Additional support for the stocks came from statements by India's Finance Minister Nirmala Sitharaman. She stated that the authorities would consider investors' concerns about existing taxes on income from securities transactions.

Currently, profits from the sale of certain exchange-traded stocks are taxed at a rate of 12.5% for long-term holdings and 20% for short-term, if the conditions stipulated by law are met. However, the minister did not announce a reduction in these rates or specify the timing of possible changes.

Against this backdrop, individual consumer and financial companies showed growth. In the first half of trading on November 4, the sectoral index Nifty FMCG added 1.05%, and Nifty Financial Services increased by 0.50%.

High oil prices remain a risk

Another factor affecting the Indian market was the dynamics of oil prices. On the morning of November 4, Brent was trading around $103 per barrel, down by about 0.6%.

For India, which imports significant volumes of oil, a decrease in raw material prices can reduce pressure on import costs and domestic inflation. However, even after the decline, oil prices remained elevated, creating additional uncertainty for the economy.

The relative stability of Nifty 50 is also linked to the changing interest of international investors in Asian markets. Previously, a significant portion of capital was directed to technology companies in South Korea and Taiwan, benefiting from the demand for AI infrastructure.

Now some investors are reconsidering Indian stocks, but further capital movement depends on corporate results, oil prices, and tax policy decisions.

Thus, Nifty 50 managed to avoid a large-scale sell-off that affected several Asian indices. However, small intraday fluctuations do not allow for a statement of the beginning of a sustainable growth of the Indian stock market.