Shares of Indian companies associated with artificial intelligence (AI) infrastructure came under heavy selling pressure on Friday, November 6, as a sharp decline in global technology stocks triggered a broad retreat across the domestic market. CG Power and Industrial Solutions fell more than 8%, MTAR Technologies declined up to 5%, and Hitachi Energy India dropped over 4%, while several other companies linked to data centres, power equipment and digital infrastructure also recorded significant losses.
The sell-off followed a steep fall on Wall Street, where the Nasdaq Composite plunged 5.52% to 24,315, marking its biggest single-day decline in 19 months. Investors were reassessing the valuations of AI-linked companies and the enormous investments required to build AI infrastructure. Concerns about tighter regulation and possible delays to data-centre projects in the United States added to the pressure, prompting investors to reduce exposure to stocks that had benefited from the AI investment boom.
AI-Linked Indian Stocks Witness Heavy Selling
The selling affected companies operating across different parts of the AI infrastructure ecosystem, including electrical equipment manufacturers, telecom companies, cloud computing providers and data-centre developers.
According to Moneycontrol, CG Power and Industrial Solutions declined more than 8% during Friday’s session. GE Vernova T&D India fell 5.5%, while Hitachi Energy India dropped over 4%.
HFCL hit its lower circuit limit, extending losses from the previous trading session. E2E Networks also touched its lower circuit limit, while ESDS Software Solution declined around 5%.
MTAR Technologies fell as much as 5%, and Black Box shares declined more than 6%. Anant Raj, which has expanded into digital infrastructure and data centres through its subsidiary Anant Raj Cloud, also dropped more than 5%.
The broader weakness extended beyond the stocks highlighted in the original Moneycontrol report. The Economic Times reported that TD Power Systems and Thermax fell around 15% each during the session, while Sterlite Technologies also came under substantial selling pressure.
| Company | Reported share-price movement on November 6 |
|---|---|
| CG Power | More than 8% decline |
| GE Vernova T&D India | Around 5.5% decline |
| Hitachi Energy India | More than 4% decline |
| MTAR Technologies | Up to 5% decline |
| Black Box | More than 6% decline |
| HFCL | Lower circuit |
| E2E Networks | Lower circuit |
| ESDS Software Solution | Around 5% decline |
| Anant Raj | More than 5% decline |
These are intraday movements reported during the trading session, not necessarily closing prices.
Why Are AI-Related Stocks Falling Globally?
The Indian sell-off followed a major decline in US technology shares, with investors questioning whether the rapid expansion of artificial intelligence infrastructure can generate sufficient returns to justify current valuations.
Technology companies have committed enormous amounts of capital to AI development. Investments include data centres, advanced processors, servers, networking equipment, electricity infrastructure and cooling systems.
These investments have created opportunities for companies supplying the physical infrastructure needed to operate AI systems.
However, investors are increasingly examining the relationship between capital expenditure and the revenue generated from AI services. If spending continues to rise faster than earnings, companies may face pressure to reduce investment plans or demonstrate stronger returns.
The latest global market decline reflected these concerns, alongside worries about regulation and the future pace of data-centre construction.
US Midterm Election Results Add to Data-Centre Concerns
The political developments in the United States also contributed to investor uncertainty.
The Democratic Party’s victories in the November 2026 midterm elections raised concerns among investors about the possibility of tighter scrutiny of new data-centre projects.
Opposition to large data centres has grown in several US states, where proposed developments have attracted attention because of their electricity consumption, water requirements, land use and impact on local infrastructure.
Investors fear that additional restrictions, permitting requirements or delays could slow the construction of new facilities and affect companies supplying equipment to the AI ecosystem.
The concern is particularly relevant for businesses that depend on continued expansion of data-centre capacity.
However, the election outcome does not automatically mean that AI infrastructure spending will stop. Data-centre projects can continue where they have viable commercial demand, adequate power availability and regulatory approvals.
The uncertainty is about the pace, cost and location of future investment rather than the disappearance of demand for AI computing.
Nasdaq Falls 5.52%, Global Technology Stocks Lose Trillions
The scale of the US market decline highlighted how quickly sentiment towards AI-linked companies had changed.
The Nasdaq Composite plunged 5.52% to close at 24,315. The decline pushed the index more than 10% below its recent record high, placing it in correction territory.
Other major US indices also recorded steep losses.
| US market index | November 5, 2026 movement |
|---|---|
| Nasdaq Composite | -5.52% |
| S&P 500 | -4.36% |
| Dow Jones Industrial Average | -3.44% |
According to Moneycontrol, the combined market value of the so-called Magnificent Seven technology companies fell by as much as $1 trillion, while companies across the S&P 500 collectively lost around $3 trillion in market capitalisation.
Major technology companies also declined. Meta Platforms fell 4%, while Amazon and Alphabet dropped 2.2% each.
The weakness demonstrated that selling pressure was not limited to smaller AI infrastructure companies. Large technology businesses with substantial AI investments also faced investor concerns about valuations, capital expenditure and future returns.
Why Indian Power Equipment Companies Are Exposed to AI Spending
Artificial intelligence is often associated with software, chips and cloud platforms, but the technology also depends on a substantial physical infrastructure network.
AI data centres require reliable electricity supplies, transformers, switchgear, power distribution systems, backup equipment and grid connections.
Companies such as CG Power, Hitachi Energy India and GE Vernova T&D India operate in areas connected to power generation, transmission and distribution equipment.
As data-centre capacity expands, demand for electrical infrastructure can increase. This has made power equipment manufacturers part of the broader AI investment theme.
However, their businesses are not exclusively dependent on AI. They also serve utilities, industrial customers, infrastructure projects and other sectors.
Consequently, a decline in AI-related sentiment does not necessarily indicate that their underlying businesses have experienced an immediate deterioration.
The market reaction reflects how investors are reassessing the future growth expectations and valuations attached to these companies.
MTAR Technologies, HFCL and the Broader AI Supply Chain
Other affected companies have different connections to the AI ecosystem.
MTAR Technologies manufactures precision-engineered products for industries including aerospace, defence, clean energy and nuclear power. Its exposure to AI is less direct than that of cloud computing providers, but investors have included it among companies benefiting from broader infrastructure and technology investment themes.
HFCL manufactures optical fibre cables, telecom products and networking equipment. Fibre connectivity is important for linking data centres, telecom networks and computing infrastructure.
Black Box provides technology infrastructure and digital solutions, while E2E Networks and ESDS Software Solution operate in cloud computing and data-centre services.
Anant Raj has been developing digital infrastructure and data-centre capacity through Anant Raj Cloud.
The simultaneous decline across these businesses shows how investors are treating AI infrastructure as a connected investment theme. When sentiment weakens, selling can spread from cloud providers and data-centre operators to networking companies and power equipment suppliers.
Is the AI Investment Cycle Slowing Down?
The latest market correction has renewed questions about whether the AI investment boom is approaching a more cautious phase.
The first phase of the AI infrastructure expansion was driven by expectations of rapidly growing demand for computing power. Technology companies and investors committed capital to data centres, advanced processors and cloud infrastructure.
The next phase will increasingly depend on the ability of these investments to generate measurable commercial returns.
Investors will want evidence that AI services can produce sustainable revenue growth, improve productivity and justify the cost of building and operating large computing facilities.
At the same time, electricity availability, construction costs, financing requirements and regulatory approvals could influence the speed of expansion.
This does not mean that AI adoption is ending. It suggests that investors may become more selective about which companies can convert infrastructure demand into consistent earnings and cash flow.
The Bigger Picture
The fall in Indian AI-related shares highlights the growing connection between domestic industrial companies and global technology investment trends. Businesses that manufacture transformers, electrical equipment, networking products and data-centre infrastructure can benefit from AI expansion even when they are not software or semiconductor companies.
However, the same connection exposes them to changes in global investor sentiment. When concerns emerge about AI valuations, infrastructure spending or regulation, the impact can spread across the entire supply chain.
For Indian investors, the distinction between long-term business demand and short-term stock-market valuations will become increasingly important. A company may continue to benefit from data-centre expansion while its shares experience volatility because expectations had already priced in substantial future growth.
Looking Ahead
Investors will monitor developments in US data-centre regulation, technology-company capital expenditure and the profitability of AI services to understand whether the latest sell-off represents a temporary correction or a broader reassessment of the AI investment cycle. The pace of new data-centre construction and the availability of electricity will also remain important indicators for companies supplying power and networking equipment.
For Indian companies, the longer-term opportunity remains linked to investment in digital infrastructure, electricity networks and advanced manufacturing. However, share-price performance will depend on actual order growth, execution, margins and valuations rather than the AI theme alone. The coming quarters should provide a clearer picture of which businesses can translate infrastructure demand into sustainable financial growth.
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