AI Selloff Hits Indian Tech Stocks: Netweb, Orient Technologies Slip As Global Markets Correct Course
Indian Tech Names Decline Amid Global AI Uncertainty
Shares of several Indian companies connected to the artificial intelligence and data centre ecosystem traded lower on Tuesday. This decline mirrors a pervasive weakness seen across global technology stocks as investors selectively reduced exposure in AI-focused names.Netweb Technologies India fell nearly 2%, trading down to ₹5,010.80. Orient Technologies saw a 2.24% decline, settling at ₹251.50. E2E Networks slipped 1.59% to ₹440, while data centre developer Anant Raj was down 0.88% at ₹527.60.
In contrast to the broader sector weakness, Black Box managed to buck the trend, rising 3.26% and reaching ₹1,014. This isolated performance contrasts sharply with the general market downturn in the technology and digital infrastructure segment.
Global Technology Sector Faces Headwinds
The cautious sentiment pervading the markets follows a noticeable selloff within the global AI and technology space. In the United States, S&P 500 futures dropped 0.53% on Tuesday. The Nasdaq 100 futures also saw pressure, dropping nearly 1%.The tech-heavy sectors faced difficulties in the previous trading session as the S&P 500 declined by 0.37%. The Nasdaq Composite fell more significantly, retreating 1.32%.
Investor Rotation and Major Tech Stock Selloff
Investor sentiment towards AI-related stocks has deteriorated, prompting traders to rotate out of the "Magnificent Seven" technology names. Amazon shares dropped nearly 5%, while Meta Platforms lost 2%. Alphabet saw a steep single-day decline of 5%, marking its most significant loss in over a year amid concerns regarding the departure of key artificial intelligence researchers.SpaceX also experienced heavy selling pressure, falling 16% and extending losses for a third consecutive session.
APAC Markets React to Global Caution
The negative mood extended into Asian-Pacific markets. South Korea's Kospi plunged by more than 6%, and the Kosdaq fell 6.27%. Japan's Nikkei 225 declined 1.5%, ending an eight-session winning streak, while the broader Topix index slipped 0.79%.Other Asian markets experienced easing movements. Mainland China's CSI 300 fell 1%, and Hong Kong's Hang Seng Index declined 0.16%. Australia's S&P/ASX 200 eased by 0.11%. India’s Nifty 50 was also trading lower, down 0.22%.
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