US Inflation Fuels Rate Hike Bets; Indian Equities Surge on AI Slump

Indian equity benchmarks rose significantly on Thursday, with the Nifty 50 gaining 1.66% and the Sensex 2.11%, as a global slump in AI-linked stocks led to prospects of foreign investors diversifying into non-AI markets like India. This market shift coincided with sticky US inflation data, which strengthened bets for further rate hikes and cast doubts on the global AI investment boom.