US AI Sell-Off: Are Indian AI Stocks Next? What Fell on 6 November, Why Nifty IT Rose, How Netweb and E2E Were Hit, and Which Risks and Dates to Watch Before Drawing Conclusions
- November 11, 2026
- Posted by: Chaitanya Auti
- Category: News
US AI sell-off on 5 Nov 2026: Nasdaq 100 -6.36%, Nvidia ~-9%. On 6 Nov Indian AI-linked names fell 5-20% while Nifty rose 2.01% and Nifty IT 0.43%. Nvidia results due 17 Nov.
Quick Answer
The US AI sell-off on 5 November 2026 took the Nasdaq 100 down 6.36% and Nvidia down about 9%, and on 6 November several Indian AI-linked names fell 5% to 20% while the Nifty rose 2.01%. Nifty IT rose 0.43%, so the hit was to AI hardware, not all technology.
The US AI sell-off of 5 November 2026 has raised a question for investors: are Indian AI stocks next? In fact, some already fell. On 6 November, while the Nifty rose 2.01%, a group of AI-linked Indian names dropped 5% to 20%, while Nifty IT rose 0.43%. This note sets out what happened in the US, which Indian stocks were hit, why IT behaved differently, and what to watch. Nobody can say what comes next, and this note does not try.
Most Indian stock data below is from one independent newsletter’s NSE closes for 6 November and from press reports, so treat the figures as reported and check the exchange. Univest’s earlier Univest note on the 5 November AI selloff covers the US side in more detail.
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What Happened in the US AI Sell-Off
| Index or stock (5 November) | Move | Note |
|---|---|---|
| Indian AI stocks: nasdaq 100 | Down 6.36% to 26,629.81 | Univest note |
| Indian AI stocks: S&P 500 | Down 4.36% | Same source |
| Indian AI stocks: nasdaq Composite | Down 5.52% to 24,315 | Dow down 3.44%; Nasdaq more than 10% below its October record |
| Indian AI stocks: nvidia | Down about 9.3% | Worst day since January 2025, per CNN |
| Indian AI stocks: micron and SanDisk | Down about 17.5% and 22% | Memory makers fell twice as hard as Nvidia |
| Indian AI stocks: AMD | Down 17.3% | Two days after a record quarter |
| Indian AI stocks: market value wiped | About $2.5 trillion | CNN; the Univest note says USD 2.3 trillion |
Press reports tie the fall to worries about AI valuations and to the US midterm results, where Democrats won both houses and some winners had promised to slow data-centre approvals. On 6 November US tech rebounded, with the Nasdaq up 1.1% and Nvidia up 2.8%, but the S&P 500 still ended the week down about 2.7%. The $2.5 trillion and $2.3 trillion figures differ by source and date, so I show both.
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Indian AI Stocks on 6 November: Who Fell
| Stock | 6 November move | Note |
|---|---|---|
| Indian AI stocks: GNG Electronics | Down 19.9% | Lower circuit; a laptop refurbisher, after its best quarter |
| Indian AI stocks: thermax | Down 17.3% | Reported profit down 4.3% on 5 November |
| Indian AI stocks: rashi Peripherals | Down 14.8% | Board approved raising up to Rs 900 crore |
| Indian AI stocks: TD Power Systems | Down 13.9% | After down 8.1% the day before |
| Indian AI stocks: aeroflex | Down 10.7% | Not explained in the source |
| Netweb Technologies | Down 6.3% | Revenue up 336% to Rs 1,323 crore, Rs 773 crore from AI systems |
| Indian AI stocks: black Box | Down 5.4% | Not explained in the source |
| E2E Networks, ESDS, STL, HFCL and KRN Heat Exchanger | Down 5% each | Lower circuit on a 5% band |
The newsletter reads the fall as a bet on AI hardware and memory pricing and not a verdict on Indian technology, and it notes that GNG Electronics fell despite a strong 3 November report. E2E fell about 35% and Netweb about 30% between 14 October and 6 November. These are one author’s figures and reading, so they are a lead for checking and not a conclusion.
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Why Nifty IT Behaved Differently
| Group | Move | Why it may differ |
|---|---|---|
| Indian AI stocks: nifty IT | Up 0.43% on 6 November and up 2.4% on 5 November | Reuters noted IT stocks often move opposite to chip stocks |
| US AI sell-off: TCS and Infosys | Not separately reported | Services firms sell implementation, not chips; see TCS and Infosys |
| US AI sell-off: AI hardware and servers | Down 5% to 20% | Exposed to AI capex, memory prices and inventory |
| US AI sell-off: nifty 50 | Up 2.01% to 25,030 | Foreign inflows lifted the broad market |
Services firms and hardware firms depend on AI in different ways, which is why the Nifty IT did not fall with the AI hardware names. A weaker AI build-out could hit data-centre spending, which matters to hardware and cooling suppliers, while services firms may see different effects. A newsletter’s funds also showed India holding flat on the day the Korea fund lost 13.5%, citing a 0.31 correlation to US chips against 0.82 for Korea, which is one view of how exposed India is.
What Could Matter Next: Dates and Risks
| Item | Detail | Source note |
|---|---|---|
| US AI sell-off: nvidia results | 17 November | Cited by one newsletter as the test of AI demand |
| US AI sell-off: netweb cash flow | H1 operating cash flow negative Rs 639 crore | Growth funded by inventory, per the newsletter |
| US AI sell-off: GNG Electronics | Inventory Rs 912 crore, borrowings Rs 611 crore | Interest cost Rs 22.0 crore against Rs 8.4 crore |
| US AI sell-off: memory prices | Contract price rises slowing; spot prices have stopped rising | Same newsletter |
| US AI sell-off: policy | A Texas data-centre moratorium is possible after 19 January | Goldman expects short pauses and Nomura sees no federal ban |
| Indian AI stocks: indian neoclouds | Rely on foreign customers and imported GPUs | Inc42 says no evidence yet of an effect on Nvidia ties |
Inc42 notes that US neocloud stocks such as CoreWeave, Nebius and IREN have sold off since September on concerns about financing, and that Indian GPU cloud firms rely on foreign customers and government-backed demand. None of this shows that Indian AI-linked stocks will fall further, and none shows they will not. A rebound in US memory stocks of 8% to 10% on the morning of 6 November came after Indian markets had closed.
Checklist and Risks
| Investor situation | Questions to consider |
|---|---|
| US AI sell-off: holder of AI-linked stocks | How much of my portfolio depends on AI capex, and can I handle another 10% to 20% swing? |
| US AI sell-off: new investor | Am I buying a business, or a headline that has already moved? |
| US AI sell-off: short-term trader | Can I handle lower-circuit risk on small hardware names? |
| US AI sell-off: long-term investor | Do inventory, debt and customer concentration at these firms fit my horizon? |
The main risks are a further AI capex slowdown, memory price changes, inventory and debt at hardware firms, policy risk on data centres, and thin liquidity that turns a 5% band into a locked circuit. Univest does not recommend any security.
Conclusion
The US AI sell-off hit some Indian AI stocks on 6 November, with falls of 5% to 20% in hardware and server names, while Nifty IT rose 0.43%. The next test is Nvidia’s results on 17 November, but nobody can say what follows. Read the filings and consult a SEBI-registered adviser before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on the US AI Sell-Off and Indian AI Stocks
Are Indian AI stocks next to fall after the US AI sell-off?
Ans. Some already fell: on 6 November, GNG Electronics dropped 19.9%, Thermax 17.3% and Netweb 6.3%. Whether more falls follow is not known, and Nifty IT rose, so the exposure differs by company.
Why did Nifty IT not fall with AI hardware stocks?
Ans. Reuters noted that IT services stocks often move opposite to chip stocks, and Nifty IT rose 2.4% on 5 November and 0.43% on 6 November. Services firms are not exposed to chip prices in the same way.
What happened in the US AI sell-off?
Ans. On 5 November the Nasdaq 100 fell 6.36%, the S&P 500 4.36% and Nvidia about 9%, with Micron and AMD down about 17%. Press reports tied it to AI valuation worries and the US midterm results.
Which Indian AI-linked stocks fell on 6 November?
Ans. GNG Electronics, Thermax, Rashi Peripherals, TD Power, Aeroflex, Netweb and Black Box fell 5% to 20%, and E2E Networks, ESDS, STL, HFCL and KRN Heat Exchanger hit a 5% lower circuit.
Is Netweb's fall a sign of weak business?
Ans. Not by itself. Netweb reported revenue up 336% to Rs 1,323 crore, but its first-half operating cash flow was negative Rs 639 crore, so the debate is about funding growth through inventory.
What should I watch next for Indian AI stocks?
Ans. Nvidia's results on 17 November, memory price trends, any US moves on data-centre approvals, and each company's inventory and debt. Dates and views come from one newsletter and press reports.
Are Indian neocloud and GPU cloud firms at risk?
Ans. Inc42 says Indian neoclouds rely on foreign customers and imported GPUs, but there is no evidence yet that the US sell-off has hurt their Nvidia relationships.
Should I sell my AI-linked stocks?
Ans. Univest does not recommend any security. Your exposure, time horizon and risk matter more than a headline, so read the filings and consult a SEBI-registered adviser.