Investors move money from AI stocks into China and India
Bloomberg reports fund managers are rotating out of AI-linked shares into Chinese and Indian markets after a tech sell-off and new political risks in the US.
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what happened
Bloomberg reports that fund managers are shifting money out of AI-related shares and into markets that had recently been out of favor, mainly China and India. The move followed a sharp sell-off in AI stocks after the US midterm elections, which gave Democrats control of both chambers of Congress. Market participants worry about tighter AI rules and are rethinking whether multibillion-dollar data-center spending will pay off.
The pain was concentrated in Asian technology companies. On November 5 the Nasdaq Composite lost 5.52%, and a day later Japan's Nikkei 225 and South Korea's KOSPI each dropped roughly 6%. Samsung Electronics, SK Hynix and TSMC, which supply equipment for AI infrastructure, faced the heaviest pressure. India's Nifty 50 gained 8.6% over the week, its strongest weekly performance since February 2021. Bloomberg says foreign investors put about $1.9 billion into Indian equities over the four sessions through November 4, and the next session brought net purchases of $1.6 billion, the largest single-day total in almost six years. Hong Kong's Hang Seng China Enterprises Index rose 5.2% for the week, its best showing since March 2025.
Reuters reports that banks led the advance, with HDFC Bank up 13.8% and ICICI Bank up 12.4%. Bloomberg links part of the rally to cheaper oil, which eases strain on India's economy, heavily dependent on energy imports.
why it matters
AI hardware makers carry a relatively small weight in Indian indexes, which is why funds see India as an alternative to the AI cycle. The CEO of Emmer Capital Partners expects selling of Asian AI-equipment suppliers to continue. Reuters notes that the Nifty 50 and Sensex remain below their levels at the start of 2026. After the Nasdaq drop, Bitcoin fell below $76,000 and liquidations topped $1 billion.
market impact
Asian chipmakers and Nasdaq: AI sell-off weighs on tech shares; India: foreign inflows support the local market
- Nifty 50 pressure up — foreign capital inflows and fund rotation toward India support the index
- Nasdaq pressure down — the AI stock sell-off and doubts about data-center payback weigh on tech shares
- Bitcoin pressure down — the tech market slump spread to crypto and triggered liquidations
tags
instruments
sources
- Bloomberg: Investors shift to China and India after AI stock sell-off — Bloomberg, 8 November 2026 at 09:55 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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