Tech Selloff Drives Second Day of Stock Losses: Markets Wrap

Mumbai | Updated: 5 Nov 2025

Key takeaways
– Global equities fell for a second session as technology shares led declines, according to Bloomberg.
– Higher bond yields and valuation concerns weighed on long-duration growth stocks; the dollar stayed firm.
– Indian IT may face pressure in line with Nasdaq weakness; broader India impact will hinge on FII flows and the rupee.

What happened
– US stocks: Mega-cap and semiconductor names led a pullback, extending the prior session’s losses. The move coincided with firmer US Treasury yields, a typical headwind for high-growth tech.
– Europe: Benchmarks tracked Wall Street lower, with technology and rate-sensitive sectors underperforming.
– Asia: Regional equities opened softer amid a weak lead from the US tech complex.
– Cross-asset: The dollar stayed bid; oil was mixed on growth vs supply dynamics; gold held a defensive tone.

Why it matters
– Tech leadership fatigue: After a strong year-to-date run in select US tech names, modest shifts in rates or guidance can trigger outsized moves. Elevated positioning amplifies volatility.
– Rates sensitivity: When yields rise, the present value of distant cash flows falls—pressuring growth and tech stocks more than value or defensives.
– Earnings and guidance: Any cautious commentary from large-cap tech on margins, AI capex timing, or demand can ripple across global IT services and semiconductor supply chains.

What it could mean for Indian investors
– Nifty IT: Expect correlation with Nasdaq/semis. Stocks to watch include Infosys (INFY), TCS (TCS), Wipro (WIPRO), HCLTech (HCLTECH), and Tech Mahindra (TECHM).
– FII flows: A stronger US dollar and higher US yields can prompt foreign outflows from EM equities, adding near-term pressure on headline indices (Nifty 50, Sensex).
– INR watch: Dollar strength can weigh on INR; a weaker rupee tends to support export-heavy IT earnings over time but can tighten financial conditions domestically.
– Sector rotation: In risk-off phases, defensives (staples, healthcare, utilities) and high-dividend names often hold up better than high-beta cyclicals.

Market snapshot (directional, check live quotes)
– US: Tech-led declines; yields up; dollar firm.
– Europe: Lower, mirroring US tech weakness.
– Asia: Softer open; tech and hardware under pressure.
– India: Sentiment likely cautious at the open; IT and high-beta pockets may see more volatility than defensives.

What to watch next
– US data: Jobs, CPI/PCE, and ISM prints for clues on the rate path and yields.
– Fed speak: Any hawkish tilt could keep pressure on duration and tech.
– Earnings: Guidance from global cloud, AI, and consumer electronics names; India IT commentary on FY guidance and deal pipelines.
– Oil and INR: Persistent dollar strength with firm oil could tighten India’s macro backdrop; watch Brent and USD/INR levels.
– Domestic cues: RBI commentary, liquidity conditions, and government bond yields for transmission to rate-sensitive sectors.

Practical portfolio takeaways
– Avoid knee-jerk reactions: Tech corrections are common in rising-yield phases. Use watchlists and alerts rather than market orders at the open.
– Stagger entries: If you’re building IT exposure, consider phased buying or SIPs to manage volatility.
– Diversify factors: Balance growth/tech with quality, value, and dividend exposures; include some defensives.
– Risk controls: Review position sizing and stop-loss levels in high-beta names; consider hedges (index ETFs/derivatives) if appropriate and understood.
– Time horizon: Align actions with goals—short-term traders manage risk tightly; long-term investors focus on allocation discipline.

For context
– A tech-led pullback does not automatically imply a broad bear trend. The path ahead will depend on the trajectory of inflation, bond yields, and earnings revisions. Keep an eye on breadth: if weakness remains concentrated in a handful of crowded names, dispersion can create opportunities elsewhere.

Note: This article summarizes developments reported by Bloomberg. Prices and conditions can change quickly; please verify live data before making decisions.