GIFT Nifty index dropped over 150 points Friday,signaling weak open for Indian markets as global sell-off in AI stocks rattled investors . This slide follows a sharp decline across Asia,where profit-taking in AI-related stocks is now common.
Japan's Nikkei 225 led losses,falling 4.5%,while South Korea's Kospi plunged 6.8%. Major semiconductor firms like Samsung Electronics and SK Hynix took hard hits,dragging markets down. Hang Seng in Hong Kong fell 1.7%,Shanghai Composite lost 1.4%,and Taiwan's Taiex declined 3.6%. Australia was odd one out,edging higher amid chaos .
Selling driven by investors wanting to lock in profits after AI stocks rallied in recent months. Wall Street's mixed performance overnight added uncertainty,tech stocks felt pressure despite positive earnings from Qualcomm,Micron Technology. Apple shares also fell sharply after price hikes on several products.
In Asia,tech stocks took hardest hit. Samsung Electronics dropped 7%,SK Hynix 6.6%. Japan's SoftBank Group nosedived over 13%,Advantest fell nearly 11%. These declines show a broader caution around richly valued tech stocks.
For Indian investors,focus stays on key technical levels after volatile Thursday . Analysts still positive on Nifty index,suggesting it could stay above crucial support. A senior technical analyst at LKP Securities noted that despite recent volatility,Nifty is in positive short-term trend if it holds above 50-day exponential moving average.
Analyst stressed index's ability to stay above 23,800 is crucial for momentum,with immediate upside target of 24,500. As GIFT Nifty suggests lower open,market participants will watch global cues,ongoing tech stock caution . Where does this lead next…
