BEIJING (dpa-AFX) - Indian shares look set to open lower on Wednesday, mirroring a global tech sell-off on concerns that the AI-fueled rally in chipmakers may be losing momentum.
As rising capital expenditures and competition become synonymous with rising semiconductor demand, doubts are mounting over whether future earnings growth can keep pace with current valuations of artificial intelligence-related and other chip companies.
Renewed U.S.-Iran tensions may also keep investors on edge. Brent crude prices surged more than 2 percent to trade above $76 a barrel this morning after the U.S. launched fresh air strikes in Iran and revoked a waiver that had allowed the country to sell oil globally.
The latest escalation in geopolitical tensions added another layer of uncertainty in financial markets and put the interim U.S.-Iran peace agreement at risk.
Benchmark indexes Sensex and Nifty ended marginally lower on Tuesday, snapping a four-day winning streak.
The rupee rose by 43 paise to close at 94.97 against the dollar, marking its sharpest single-session gain in three weeks on expectations of a lower import bill after Saudi Arabia cut August crude oil prices for Asian buyers by $11 per barrel.
Foreign institutional investors net bought Indian equities worth Rs. 393 crore on Tuesday while domestic institutional investors net sold shares worth Rs. 383 crore, according to provisional data on exchanges.
Asian markets were broadly lower this morning, even as Hong Kong's Hang Seng index surged nearly 2 percent after Reuters reported that China's DeepSeek is developing its own chip to help power artificial intelligence systems.
The dollar index edged up slightly and Treasuries were steady while gold held firm above $4,100 an ounce.
U.S. stocks ended lower overnight after reports of projective attacks on several vessels near the Strait of Hormuz sent crude prices sharply higher.
The tech-heavy Nasdaq Composite closed 1.2 percent lower as shares of Micron and other chip semiconductor firms fell on concerns the AI-driven rally may be overstretched. The S&P 500 dropped half a percent and the Dow eased 0.3 percent.
European stocks ended broadly lower on Tuesday amid a sell-off in AI-linked technology stocks. The pan-European Stoxx 600 fell 0.7 percent.
The German DAX lost 1.4 percent and France's CAC 40 shed half a percent while the U.K.'s FTSE 100 ended 0.1 percent higher, led by energy stocks following Shell's upbeat second-quarter guidance.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
