Nasdaq sinks 5.5%, Nvidia falls 9% and AMD 17%, yet the Sensex gains 0.76% and the Nifty 0.51% as only India’s AI and data-centre stocks feel the pain.

The decline followed a major crash in US technology stocks on Thursday, 05 November, as investors grew concerned about the future of AI investments and data centre expansion.

The Nasdaq Composite plunged 5.52% to close at 24,315, marking its biggest single day fall in 19 months and pushing the index into correction territory. The S&P 500 declined 4.36%, while the Dow Jones fell 3.44%. Around $2.5 trillion in market value was erased from the Nasdaq 100.

The selloff followed the US midterm elections, in which Democrats gained control of both chambers of Congress. Investors fear that tighter scrutiny and possible restrictions on new data centre projects could slow AI infrastructure development. 

This raised questions about future demand for semiconductors, computing equipment and power systems. Nvidia fell around 9%, while AMD plunged 17%, adding to the pressure on the technology sector.

The global selloff spread to Indian companies linked to AI and data centre investments.

CG Power shares declined more than 8%, while GE Vernova T&D India fell 5.5%. HFCL and E2E Networks hit their lower circuit limits. MTAR Technologies dropped up to 5%, Hitachi Energy India fell over 4%, and Black Box declined more than 6%. ESDS Software Solution and Anant Raj also came under pressure.

These companies are exposed to different parts of the AI ecosystem, including data centre services, cloud computing, telecom networks, power equipment and infrastructure.

The selling is concentrated in AI and infrastructure linked stocks rather than the entire market. The Sensex gained 0.76%, while the Nifty 50 rose 0.51% on Friday, supported by domestic buying and foreign investment flows.

The latest fall shows how global technology trends can affect Indian stocks even when local market sentiment remains positive.

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