Netweb Tech, E2E Networks, Black Box fall up to 7% as AI slowdown fears hit Indian stocks

According to fresh market updates, Shares of Indian firms linked to the artificial intelligence and data-centre ecosystem declined sharply on Tuesday, tracking a selloff in global technology stocks as market participants turned wary after AI industry leaders called for a slowdown in the development of advanced systems.

Stocks of Netweb Technologies were trading at Rs 4,686.50, down 6.77%, or Rs 340.50, at 1:55 pm on the NSE. E2E Networks declined 5%, or Rs 30.50, to Rs 579.85, while Black Box declined 5.42%, or Rs 43.40, to Rs 757.40. Anant Raj was down 0.85% at Rs 593.25.

The selling in Indian AI-linked stocks came after a sharp overnight slide in US technology shares. A selloff in chipmakers, led by Nvidia and Broadcom, pushed a semiconductor gauge down 5.9%, while the Nasdaq 100 declined 0.8%. Bank of America led losses among financial stocks after CEO Brian Moynihan warned around trading topline.

The pressure on technology stocks came as concerns over the pace and risks of AI development resurfaced. A 3,800-word letter by Anthropic CEO Dario Amodei, endorsed by OpenAI CEO Sam Altman and SpaceXAI CEO Elon Musk, called for the development of the most advanced AI systems to be slowed to prevent the technology from slipping beyond human control and causing catastrophic harm.

"If the latest developments propel out the timing of promised AI returns, it makes sense that market participants would become less enthusiastic," Matt Maley at Miller Tabak told Bloomberg.

Microsoft's AI researchers have additionally released a 15,000-word manifesto outlining guiding principles for the development of cutting-edge AI models. The document centres on the principle that "People matter more than AI."

US President Donald Trump criticised Amodei's call for a slowdown in AI development, intensifying his opposition to new guardrails. Trump blamed a "SICK conspiracy" for voter backlash against AI data centres and concerns over frontier AI models, adding that "the only one that is happy around it is China."

The broader market backdrop additionally remained unfavourable for risk assets. Brent crude topped $105 a barrel, raising concerns over inflation ahead of the The US central bank's policy decision, while the US 10-year Treasury yield hovered near 5%.