E2E Networks shares fell 3.5% as AI-related stocks sold off

E2E Networks shares fell 3.5% to ₹710 at 1:05 pm on October 13 as AI-related stocks declined during a global chipmaker selloff. The move came alongside falls in overseas chipmakers and a separate decline in energy shares as crude prices moved amid geopolitical developments.

E2E Networks shares fell 3.5% to ₹710

E2E Networks share price were trading at ₹710, down 3.5%, at 1:05 pm on October 13.

At the same time, Black Box shares were down 1.5% and Orient Technologies shares were down 1.2%.

Anant Raj shares, described as a proxy play on artificial intelligence, were down 2% on October 13.

Energy shares fell 3% to 5% as Brent crude stood at $105.9

Hitachi Energy India, GE Vernova T&D India and CG Power and Industrial Solutions were down 3% to 5% at 1:10 pm. The three companies were among the worst-hit stocks in the Nifty 200 index.

The Nifty Energy index was down almost 1% at 35,562.15 points at 1:10 pm.

Brent crude futures were at $105.9 per barrel, near a two-week high, as investors weighed developments in the Middle East and the Russia-Ukraine conflict.

AI-related stocks traded up to 4.5% lower after chipmaker falls

AI-related stocks in India traded up to 4.5% lower on October 13. The move followed reports of rapid technology progress by Chinese memory-chip company ChangXin Memory Technologies, or CXMT.

The MSCI index covering Asia-Pacific shares outside Japan fell more than 2%, while Nasdaq futures fell 0.77% and European futures fell 0.2%.

Samsung fell 8%, SK Hynix fell 10%, Taiwan Semiconductor Manufacturing Company declined 1.8% and Kioxia Holdings fell 14%.

Charu Chanana, chief investment strategist at Saxo, said investors were questioning how much AI demand could grow and how long current profits and margins could last as competition increased.

South Korea’s KOSPI fell more than 6% during the regional decline

South Korea’s KOSPI fell more than 6%, while Japan’s Nikkei fell 2.6% and Taiwan stocks fell 2%.

CXMT fell as much as 5.3%, and China’s blue-chip index fell to its lowest level in more than a year.

Investors had bought AI-related shares during the previous four years as spending on the technology supported corporate profits and economic growth. Concerns about concentration and the timing of spending payoffs also weighed on the sector.

Tencent was selling dollar and offshore yuan bonds on Tuesday.