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Tech stocks plunged as Nasdaq 100 fell over 3 percent and S&P 500 1.4 percent, chip makers like Micron and Sandisk slumped, KOSPI sank 10 percent led by Samsung and SK Hynix
Indian IT Stocks Brace For Impact After $1 Trillion Tech Selloff On Wall Street
Indian IT stocks such as Infosys, TCS, Wipro, HCLTech and Tech Mahindra are likely to remain in focus on Wednesday after a sharp selloff in US technology shares overnight. The weakness was led by semiconductor and AI-linked stocks, dragging major Wall Street indices lower and raising concerns about sentiment in the global technology sector.
The tech sell-off deepened on Wall Street, with benchmark indices falling over 2 per cent on Tuesday. After gaining sharply over the past few months, investors headed for profit booking in semiconductor and chip related stocks.
Technology-heavy US indices came under sharp selling pressure on Tuesday, with the Nasdaq 100 plunging more than 3%, or over 1,000 points, while the Nasdaq Composite dropped 2.2%. The broader S&P 500 declined 1.4%. In contrast, the Dow Jones Industrial Average, which has lower exposure to big technology stocks, outperformed the other major indices, erasing an early loss of around 350 points to finish nearly unchanged.
Chip stocks bore the brunt of the selloff on Wall Street, with Micron Technology tumbling 13% to emerge as one of the session’s biggest losers. Sandisk also dropped by a similar margin. Other semiconductor giants, including Qualcomm, Intel, AMD and Nvidia, fell between 4% and 8% during Tuesday’s trading session.
Asian markets have come under intense selling pressure amid profit booking on Tuesday, with the tech rout intensifying globally.
South Korea’s key benchmark index Kospi, tanked 10 per cent on Tuesday to 8,203 against the previous day’s close at 9,114. Its two bellwethers, Samsung and SK Hynix, were the major losers, falling each up to 13 per cent intraday on Tuesday.
This marks the fifth-largest single-day decline in the benchmark’s history since the global financial crisis in 2008.
The KOSPI has become heavily dependent on its largest constituents. SK hynix, Samsung Electronics, SK Square, and Samsung Electro-Mechanics accounted for 63.2% of the index at the previous day’s close, meaning declines in these stocks are dragging the benchmark sharply lower.
About the Author
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the I…Read More
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