AI selloff sends Indian IT stocks to biggest one-day gain in 17 months
On October 13, a selloff in AI-related shares pushed Asian chip stocks lower while money rotated into Indian software-services names that some investors treat as an AI hedge. India's NSE Nifty IT index rose as much as 4.9%, on track for its biggest one-day gain in 17 months, led by HCL Technologies and Tata Consultancy Services. According to Sina Finance, Broadcom's CEO described the AI investment mood as akin to gambling at a casino, after which South Korea's chip-heavy KOSPI fell more than 5%; Samsung Asset Management portfolio manager Alan Richardson said Indian IT stocks bounce whenever the AI trade pulls back, but that alone is not enough to bring foreign flows back without sustained earnings and share-price recovery.
It signals a cooling spell in the AI capital-spending narrative and rapid rotation of money between AI-linked equities.