Shares of Sterlite Technologies, HFCL, and MTAR Technologies each hit their lower circuit, plummeting 5% on Friday. This significant drop is part of a wider selloff impacting artificial intelligence (AI) related stocks globally, with Asian markets experiencing substantial declines.
Global AI Stocks Face Pressure
The downturn in AI stocks has been attributed to concerns arising from the US midterm election results. The outcome has introduced uncertainty regarding the future policy environment for global AI investment, dampening investor sentiment and triggering market volatility.
Major Asian indices reflected this anxiety, with South Korea's Kospi index crashing 6% to 5059 and Japan's Nikkei tumbling 6.69% to 57,250. Individual tech giants also saw steep falls; Samsung Electronics shares dropped 6.35% and SK Hynix, a significant market player, lost 10.44%.
Indian AI-Related Firms See Sharp Declines
In India, Sterlite Technologies saw its stock slip 5% to Rs 719.15, reducing its market capitalization to Rs 36,979 crore. HFCL stock also fell 5% to Rs 209.95, with its market cap declining to Rs 32,135 crore. MTAR Technologies shares similarly dropped 5% to Rs 5449.75, bringing its market cap to Rs 16,763 crore.
Beyond these three, other AI-related Indian stocks also traded in the red:
- TD Power Systems: Shares crashed 16.59% to Rs 558. The company, which manufactures generators vital for AI data centers' power supply, experienced one of the steepest declines.
- CG Power: Shares fell 9.34% to Rs 734, with the firm's market cap shrinking to Rs 1.21 lakh crore.
- Black Box: Shares slipped 7% to Rs 797.90, reducing its market cap to Rs 14,305 crore.
- Anant Raj: Shares of this AI-related firm were down 5% to Rs 439, with a market cap of Rs 15,976 crore.
Market analysts suggest that policymakers may consider measures to stabilize markets and contain further turbulence amidst this heightened volatility.