GIFT Nifty Falls 150+ Points on AI Stock Sell-off

The sell-off followed sharp declines across Asia, with Japan's Nikkei 225 falling 4.5% while South Korea's Kospi dropped as much as 6.8%. As reported by The Economic Times, South Korea's losses were dragged lower by steep declines in semiconductor giants Samsung Electronics and SK Hynix. Hong Kong's Hang Seng declined 1.7%, China's Shanghai Composite lost 1.4%, and Taiwan's Taiex fell 3.6%. Australia was the lone major market to buck the trend, edging higher.

Technology stocks bore the brunt of the selling in Asia, with Samsung Electronics dropping 7% and SK Hynix losing 6.6%. According to The Economic Times, Japan's SoftBank Group slumped more than 13% and semiconductor equipment maker Advantest fell nearly 11%. The weakness followed investors rushing to lock in gains after the strong rally in AI-related stocks over recent months.

Market sentiment also weakened after Wall Street ended mixed overnight, with technology stocks coming under pressure despite better-than-expected earnings from chipmakers Qualcomm and Micron Technology. As reported by The Economic Times, Apple shares also declined sharply after the company announced price increases across several products, adding to the global technology sector pressure.

For Indian markets, according to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty remains in a positive short-term trend despite failing to break above a falling trendline on the daily chart. As reported by The Economic Times, the index sustained above the 50-day exponential moving average with the RSI in a positive crossover, indicating strengthening momentum. The trend is likely to stay positive as long as the index holds above 23,800, while 24,500 remains the immediate upside target.