नैस्डैक ने अक्टूबर में $ 2 ट्रिलियन पोंछे क्योंकि AI कैश बर्न स्पार्क ग्लोबल टेक सेलऑफ से डरता है

US technology stocks suffered their sharpest monthly decline of 2026 in October, with the Nasdaq 100 Index plummeting 5% and erasing approximately $2 trillion in market capitalisation as investor patience wore thin over escalating artificial intelligence spending commitments from mega-cap firms. The selloff, triggered by disappointing quarterly results from Intel and Amazon, marks the index's third technical correction this year and has immediate implications for Indian equity markets through the FII flow channel and IT sector sentiment.

What Happened

According to multiple financial wire reports, Wall Street closed Friday's session deep in negative territory as the Nasdaq Composite dropped over 2.5% and the Dow Jones Industrial Average shed approximately 500 points. The catalyst was a confluence of earnings disappointments that reframed the AI investment narrative. Intel's results highlighted manufacturing challenges and delayed foundry profitability, while Amazon's cloud division guided to slower growth despite accelerating capital expenditure on AI infrastructure.

The report states that major technology companies including Meta Platforms, Alphabet, and Microsoft have signalled continued aggressive capex increases for AI data centres, custom silicon, and large language model training. However, revenue attribution from these investments remains opaque, leading institutional investors to question return-on-investment timelines. The Nasdaq 100's 5% October decline represents its third correction — defined as a 10% drop from recent highs — in 2026, a frequency not seen since the 2022 bear market.

Reddit shares plunged 23% in after-hours trading after the company warned that Google's AI-powered search features were reducing referral traffic and could depress daily active users, underscoring a broader theme: AI disruption is now threatening the incumbents' own business models, not just creating new opportunities.

Why It Matters for India

The Indian equity market's correlation with US technology stocks has deepened significantly since 2020, driven by three structural linkages. First, foreign institutional investors (FIIs) manage approximately ₹55 lakh crore in Indian equities, and their risk appetite is heavily influenced by NASDAQ volatility. When US tech enters correction territory, FIIs typically reduce emerging market exposure, creating selling pressure on NIFTY 50 heavyweights.

Second, the NIFTY IT index — comprising TCS, Infosys, HCLTech, Wipro, and Tech Mahindra — derives over 60% of aggregate revenue from North America. US enterprise software spending cycles directly determine Indian IT deal flow, discretionary project budgets, and hiring intentions. A sustained pullback in AI infrastructure spending by US hyperscalers could delay the discretionary digital transformation projects that Indian service providers depend on.

Third, valuation multiples for Indian new-age tech stocks (Zomato, Paytm, PolicyBazaar) and traditional IT services firms have historically expanded and contracted in sympathy with US SaaS and cloud multiples. The Nasdaq 100's price-to-earnings compression from 28x to 24x over October creates a gravitational pull on Indian tech valuations.

Market Impact

NIFTY 50 and Sectoral Indices

The NIFTY 50 opened Monday's session (November 2, 2026) under pressure, with pre-market SGX NIFTY futures indicating a gap-down start of 80-100 points. The index faces immediate support at 24,850 (20-day EMA) and 24,600 (50-day EMA). With the weekly expiry on Tuesday, November 3, option writers have concentrated open interest at the 24,900 and 25,000 call strikes, suggesting resistance in that zone.

NIFTY IT

The sectoral index is the most vulnerable, with beta to Nasdaq 100 exceeding 1.2x over the past six months. TCS and Infosys, carrying combined weight of ~8% in NIFTY 50, could see 2-3% intraday declines if the risk-off tone persists. Investors should monitor management commentary on Q3FY27 deal pipelines during the ongoing earnings season for signs of US client budget freezes.

Banking and Financials

BANKNIFTY, which lacks a weekly expiry this cycle (monthly expiry December 29), may outperform on a relative basis as domestic credit growth remains robust and FII selling in financials has been less intense than in IT. However, a sharp USD/INR depreciation above 84.50 could pressure rate-sensitive banking stocks.

Midcap and Smallcap Indices

Domestic institutional investors (DIIs) have been net buyers for 14 consecutive months, providing a buffer. The NIFTY Midcap 150 and Smallcap 250 indices may decouple from the large-cap selloff if SIP flows remain steady, though sentiment contagion remains a risk.

Historical Context

Similar Nasdaq corrections in February 2022 (-12%), September 2022 (-10%), and August 2024 (-11%) each coincided with FII outflows from India averaging ₹18,000-25,000 crore per month. In each episode, the NIFTY IT index underperformed the benchmark by 400-600 basis points over the subsequent quarter. The 2022 episodes were exacerbated by Fed tightening; the current episode is distinct because the Fed has already begun cutting rates (50 bps in September 2026), but long-term yields have risen on fiscal concerns, keeping the discount rate high for long-duration tech cash flows.

The October 2024 correction saw the NIFTY 50 decline 3.2% while Nasdaq fell 6.8%, demonstrating that India's beta to US tech has moderated but remains material. DII buying absorbed 70% of FII selling during that period.

What to Watch

• US November FOMC meeting (Nov 5-6): Any hawkish shift in dot plots or Powell commentary on sticky services inflation would extend the selloff.
• Microsoft, Meta, Alphabet earnings (late October/early November): Capex guidance for 2027 and AI revenue disclosure will determine whether the spending narrative stabilises.
• FII flow data (daily NSDL reports): Sustained selling above ₹3,000 crore/day for 3+ sessions would signal structural repositioning.
• USD/INR and 10-year US Treasury yield: A break above 4.5% on the 10-year UST typically coincides with EM equity stress.
• NIFTY weekly expiry (Nov 3): Max pain at 24,900; put-call ratio at 0.85 suggests mild bearish positioning.
• Q2FY27 IT earnings commentary: TCS (Oct 10), Infosys (Oct 17), HCLTech (Oct 14) — watch for FY27 revenue guidance revisions.

Disclaimer

AlgoIntra provides AI-generated technical data and market commentary, not investment advice. F&O trading involves extreme risk of capital loss.