The effect of heavy selling in American and Asian markets can also be seen on the Indian stock market on Friday. Gift Nifty trends are indicating a weak start for Nifty and Sensex. GIFT Nifty was trading at around 24,413 levels, which is about 175 points below the previous closing price of Nifty futures. Apart from this, investors can also book profits after six consecutive trading sessions of growth in the Indian market.
The biggest reason for the decline in global markets was heavy selling in shares of Artificial Intelligence (AI) and semiconductor companies. In the US, the Nasdaq Composite fell 5.52% on Thursday. This is the biggest single-day decline in 19 months. The Nasdaq-100, which focuses on technology stocks, declined by 6.3% and wiped out about $2.3 trillion from its market value.
At the same time, the S&P 500 index fell from 4.36% to 4.4%. Due to this, its market value decreased by about 2.8 trillion dollars. Dow Jones Industrial Average also fell by 3.44%. The biggest one-day decline since April 2025 was recorded in all three major US indices. Nasdaq Composite also reached the correction zone with a fall of more than 10%. The volatility index, indicating fear and uncertainty in the market, also rose sharply.
Know the 3 big reasons for the decline in the markets
Highest selling in shares of AI and chip companies
The huge fall in the shares of semiconductor companies spoiled the market environment. Shares of AMD fell 17.3%, Micron Technology fell 17.5% and Nvidia fell 9.3%. Qualcomm shares also fell 9.5%. Investors were disappointed with the estimates given by the company regarding the sales of smartphone chips.
In the last one year, investors have invested a large amount of money in AI related companies. It was expected that the demand for data centres, computing capacity and advanced chips would continue to increase. But now investors are raising questions about the high valuation of shares of these companies and the huge investment to be made in future.
US election results increase concern over AI sector
The results of the US midterm elections were also a major reason for the selling. There was a rise in the market initially after the big victory of the Democratic candidates in the elections. But many Democratic candidates opposed the rapid expansion of AI data centers. He said that this could increase the pressure on electricity consumption, the environment and the costs of local communities.
Now investors are fearing that in the new political situation, strict rules may be imposed on AI data center projects or their expansion may be delayed. This may affect chip manufacturers, server companies, data center operators and power supply companies.
Profit booking after the rise increased the decline
After the results of the US elections, there was a strong rise in Wall Street on November 4. The Dow Jones rose more than 1,000 points in early trading and the S&P 500 recorded its biggest one-day gain in three months. But in the very next trading session, investors started booking profits. Especially there was rapid selling in AI and chip companies, which affected the entire market.
Its effect was visible in Asian markets also. Japan’s Nikkei reached the bear market range amid weakness in semiconductor stocks. On the other hand, after the selling, crude oil prices rose again and Brent crude started trading above $99 per barrel.
Source: ndtv.in
