Investors saw nearly Rs 3.5 lakh crore wiped off their wealth within minutes of Friday's opening trade as Indian benchmark indices extended their losing streak to a fifth straight session amid weak global cues.
The NSE Nifty 50 declined as much as 0.9% to 23,646, while the BSE Sensex dropped 778 points, or 1%, to 75,613.43 in early trade.
The selloff mirrored weakness across Asian markets, where investors reduced exposure to risk assets after another steep decline in U.S. technology stocks and a fresh surge in crude oil prices heightened concerns over inflation and global economic growth.
Japan's Nikkei 225 tumbled 2.46%, South Korea's Kospi fell 3.04%, Australia's ASX 200 lost 0.57%, while China's Shanghai Composite edged 0.01% lower.
Investor confidence in technology shares has weakened as markets increasingly question whether the massive investments being made in artificial intelligence will translate into earnings strong enough to support elevated valuations. At the same time, geopolitical tensions and rising energy prices have added to uncertainty.
Brent crude climbed above $100 a barrel, raising fears that higher fuel costs could reignite inflation and force central banks to keep interest rates elevated for longer. The move also pushed U.S. Treasury yields to their highest levels this year and strengthened the dollar as traders reassessed the outlook for monetary policy.
Wall Street provided a weak lead overnight. The Dow Jones Industrial Average fell by more than 500 points, while the S&P 500 lost 1.2%. The Nasdaq Composite dropped 2.2%, its steepest one-day decline since late June, as disappointing earnings from two major technology companies accelerated the retreat in semiconductor stocks.
U.S. equity futures, however, were relatively stable in early Asian trade. S&P 500 futures were broadly unchanged, Nasdaq-100 futures rose 0.3%, while futures linked to the Dow Jones Industrial Average slipped by around 20 points.
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