The impact of Wall Street’s selling in tech stocks and the resulting huge fall in the South Korean market is also visible on the Indian stock market today. The selling pressure is so high that BSE Sensex has fallen by about 600-700 points, while NSE Nifty 50 has also fallen below the level of 23,900.
**Fall in Asian markets**
The slowdown in South Korea has also affected the Indian stock market. The benchmark KOSPI index there has fallen by about 10%. Due to this huge fall, trading on the South Korean exchange had to be halted for 20 minutes.
Global market sentiment deteriorated after the fall in shares of big American tech companies like Alphabet and SpaceX. Investors, scared of Artificial Intelligence (AI) and high valuations of tech companies, started selling on a large scale. In South Korea, SK Hynix shares fell more than 11% and Samsung Electronics shares fell more than 8%. The fall in these two big semiconductor stocks destabilized the entire market.
**South Korean market made many records**
It is noteworthy that despite the ongoing tensions in Iran and global uncertainties, the South Korean market was trading at a record high this year, mainly due to the huge demand for AI and chips. The index had increased by about 80-90%. At such high levels, the valuation of companies had become very expensive. As a result, after the decline in the US market, foreign investors also started selling their holdings in South Korea and made profits by selling shares worth more than $1.3 billion (about 2 trillion won).
decline in domestic stock market
As the balance of Asian markets got disturbed, investors in India faced a difficult situation. Today, shares of India’s major IT companies – Infosys, TCS, HCL Tech and Wipro – saw the biggest decline. Due to this, Nifty IT index was the worst performing sector of the day. Due to this huge fall in the market, investors lost assets worth about ₹4.57 lakh crore to ₹5 lakh crore.