Concerns that rapid advances in artificial intelligence could hurt not just IT services and software firms but also other industrial and services sectors triggered a broad sell-off across markets on Thursday. Financial and real estate stocks also declined, reflecting worries over job losses and slowing demand. The anxiety is expected to persist.
Gold and silver, which fell sharply on Thursday, are attempting a rebound this morning.
Gift Nifty in GIFT City derivatives trade closed at 25,677. It opened at 25,651, rose to 25,730 and then eased, signalling a weak start for Indian markets.
In US ADR trading, Infosys dropped 9.84 percent and Wipro fell 4.60 percent amid continuing AI-related concerns.
Fears that AI could sharply cut revenues of IT services companies weighed heavily on domestic equities.
NSE IT index fell more than 5.5 percent
IT stocks declined between 4.7 percent and 6.61 percent
The index has dropped 14.1 percent in a week
Market capitalisation erosion estimated at about $52 billion (around ₹4.7 lakh-crore)
The market now believes IT services firms could face significant pressure, while global capability centres in India may see a milder impact. Realty stocks also weakened on layoff concerns.
Sensex fell 558.72 points (0.66 percent) to 83,674.92. Nifty 50 declined 146.65 points (0.57 percent) to 25,807.20. Broader markets also ended lower. Market breadth remained negative.
Foreign portfolio investors were net buyers of ₹108.42 crore, while domestic institutions were net sellers of ₹276.85 crore.
Fears that new AI breakthroughs could make several industries redundant and reduce employment dragged Wall Street lower.
The Dow Jones Industrial Average slipped below 50,000 and the Nasdaq Composite fell under 23,000.
Dow fell 669.42 points (1.34 percent) to 49,451.98
S&P 500 lost 1.57 percent to 6,832.76
Nasdaq declined 2.04 percent to 22,597.15
Financials and logistics stocks weakened on fears that AI could disrupt wealth management and supply chain businesses. Real estate shares also fell on expectations of lower demand if jobs shrink. Software stocks extended earlier losses.
Apple dropped 5 percent after reports of issues with the latest Siri version and complaints from the Trump administration about alleged bias in Apple News.
January US retail inflation data is due today. Markets expect 2.5 percent annual growth and 0.3 percent month-on-month rise, compared with 2.7 percent and 0.3 percent in December.
US futures showed marginal gains in early trade.
European markets closed mixed. Reports that US investment firm Nuveen may acquire UK-based Schroders sent Schroders shares up 28.5 percent.
Asian markets were largely weak. Japan’s Nikkei 225 fell about 1 percent. Hong Kong and Chinese indices declined, while Australia and South Korea saw modest gains.
Gold fell 3.19 percent on Thursday, closing at $4,922.80 per ounce after swinging between $5,101 and $4,879. It rebounded over 1 percent this morning to near $4,980.
Silver plunged 10.65 percent to close at $75.44 after touching $74.32, and later recovered to around $76.80.
On MCX, gold closed at ₹1,52,300 per 10 grams and silver at ₹2,37,136 per kg. In Kerala, 22-carat gold fell ₹880 to ₹1,16,160 per sovereign.
Industrial metals were mostly lower, though aluminium edged up. Crude oil fell about 3 percent after the International Energy Agency projected slower demand growth. Brent closed at $67.49 per barrel.
The dollar index closed at 96.93 before easing slightly. The rupee strengthened by 11 paise to 90.59 against the dollar.
Sensex: 83,674.92 (-0.66%)
Nifty 50: 25,807.20 (-0.57%)
Bank Nifty: 60,739.75 (-0.01%)
Mid cap 100: 60,470.85 (-0.47%)
Small cap 100: 17,344.10 (-0.64%)
Dow Jones: 49,451.98 (-1.34%)
S&P 500: 6,832.76 (-1.57%)
Nasdaq: 22,597.15 (-2.04%)
Dollar: ₹90.59 (-₹0.11)
Gold (oz): $4,922.80 (-$162.30)
Gold (sovereign): ₹1,16,160 (-₹880)
Brent crude: $67.49 (-$2.14)
