Foreign institutional investors (FIIs) continued to exit stocks on Monday with net sales of over Rs 5,000 crore, pushing the Nifty to close below 23,000 points for the first time in over seven months.
The rout was accentuated by China’s upgraded low-cost, low-power AI startup DeepSeek sparking worries about the profits of rivals, leading to a plunge in technology stocks worldwide. A closely watched gauge of chipmakers plunged almost 7%. Nvidia, the poster child of the AI boom, sank nearly 13%, erasing a record $465 billion from its market capitalisation.
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The S&P 500 dropped 1.5% while the Nasdaq 100 was down about 2.5%. Dow went down around 0.28% after the markets opened. The pan-European STOXX 600 index fell 0.4%, while the blue-chip Euro STOXX 50 dropped nearly 1%.
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Asia sent a mixed signal as Japan’s Nikkei dropped 0.9%, reversing an initial advance, while Singapore’s Straits Times index eased 0.1%. New Zealand’s equity benchmark slipped 0.6%. At the same time, Hong Kong’s Hang Seng rallied 1% and mainland blue chips added 0.1%.
In India, telecom, IT and technology were among the top sectoral losers, with all three falling over 3% each. The Nifty IT index fell by 3.36%, marking its biggest single-day decline since July 17, 2023.
The Sensex ended the day at 75,366.17, plunging 824.49 points or 1.08%. Similarly, the Nifty fell by 263.05 points or 1.14%, closing at 22,829.15, marking its first close below the 23,000-mark since June 6, 2024. Both indices are now trading approximately 13% lower than their respective peaks in late September.
“Nasdaq futures slumped and Japanese tech stocks declined, reflecting concerns over Chinese startup DeepSeek’s cost-efficient AI model, which is posing threats to the business models of US tech giants like Nvidia,
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