9 months ago
Global Markets Fall Amid Tech Concerns
On Monday, stock markets in Japan and India both went down.
In Japan, the Nikkei index fell because investors are worried that tech companies, especially those related to artificial intelligence, are too expensive.
Some tech stocks like SoftBank and Advantest lost value, but companies that make things for data centers did well.
In India, the Sensex and Nifty 50 also fell.
Investors sold stocks across different sectors because of worries about the Indian rupee getting weaker, money flowing out of the country, and what the US Federal Reserve might do with interest rates.
Some stocks like Tech Mahindra and Wipro went up, but many others, like InterGlobe Aviation and BEL, went down.
The real estate and banking sectors in India also saw losses.
Experts think the market might stay uncertain for a while.
Japan's Nikkei share average edged lower due to tech stock valuation concerns, with SoftBank Group, Advantest, and Tokyo Electron among the biggest drags.
Fujikura and Fuji Electric were top performers in Japan, soaring 5.7% and 4.1% respectively.
The real estate sector in Japan was the best-performing sector, climbing 2.6%, while the banking sector lost 0.7%.
India's Sensex closed 610 points lower at 85,102.69, and the Nifty 50 settled at 25,960.55, down 226 points.
Investors lost over ₹7 lakh crore in a single session as the cumulative market capitalisation of BSE-listed firms dropped to nearly ₹463.6 lakh crore.
- Who
- Investors and market analysts
- What
- Global stock markets, including Japan's Nikkei and India's Sensex and Nifty 50, experienced declines due to tech valuation concerns and global economic uncertainties.
- Where
- Tokyo, Japan and Mumbai, India
- When
- Monday, December 8
- Why
- Investor caution about high valuations for tech shares, expectations of a US Federal Reserve interest rate hike, and global monetary policy concerns.
Key facts
- Nikkei Index
- 50,473.84
- Topix Index
- 3,376.43
- SoftBank Group Decline
- 2.5%
- Advantest Decline
- 0.9%
- Tokyo Electron Decline
- 1.0%
- Fujikura Increase
- 5.7%
- Fuji Electric Increase
- 4.1%
- Real Estate Sector Increase
- 2.6%
- Banking Sector Decline
- 0.7%
- Sensex Index
- 85,102.69
- Nifty 50 Index
- 25,960.55
- BSE Midcap Decline
- 1.73%
- BSE Smallcap Decline
- 2.20%
- Market Capitalisation Drop
- ₹7 lakh crore
- Top Gainers in Nifty
- Tech Mahindra, Wipro, HCL Technologies
- Top Losers in Nifty
- InterGlobe Aviation, BEL, JSW Steel
- Most Active Stocks by Volume
- Vodafone Idea, Filatex Fashions, Suzlon Energy
- Stocks with Over 10% Gain
- Kesoram Industries, Latent View Analytics, Rolex Rings, Dredging Corporation of India, Brijlaxmi Leasing and Finance
- Nifty Realty Decline
- 3.53%
- Nifty PSU Bank Decline
- 2.81%
- Nifty Media Decline
- 2.73%
- Nifty Metal Decline
- 1.92%
- Nifty Bank Decline
- 0.90%
- Financial Services Decline
- 0.70%
- FPI Outflows
- ₹11,820 crore
Timeline
AI Stocks' High Valuations Spark Sell-Off.
Unproven Benefits, Underperformance Fuel Panic.
Nikkei Plunges on AI Tech Stock Fears.
Quotes
Vinod Nair
Head of Research, Geojit Investments Limited
“The market experienced a broad-based decline, slipping below the 26,000 mark as investors turned cautious ahead of this week’s FED policy decision. Despite robust domestic growth figures and the RBI’s recent rate cut, short-term sentiment remains overshadowed by global monetary policy concerns, persistent FII outflows, and currency depreciation. Volatility was further amplified by a surge in Japanese bond yields to multi-year highs, sparking fears of a potential unwinding of the yen carry trade.”
livemint.com
CNBC TV 18
Sources
Japans Nikkei edges lower, big tech shares drag amid valuation worries
Japans Nikkei buoyed by stable yen; SoftBanks slide caps gains
Sensex falls 600 points, Nifty 50 ends below 26k; mid, small-caps bleed— 10 key highlights from Indian stock market
Top Gainers & Losers on Dec 08: Kaynes Tech, IndiGo, Reliance Power, Vodafone Idea, OLA, Angel One among top losers
Nifty breaks below 26,000; midcaps log worst fall in four months
