Indian investors have been hit hard by the US tech crash

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  • The recent drop in shares of Facebook parent company Metaplatform on Thursday and an estimated $1 trillion loss in the major US tech giant’s market capitalization this week has hit Indian investors pretty hard.

To make matters worse, most of these stocks are already down between 30% and 70% year-to-date. The recent crash would have put additional pressure on investors holding these stocks.

The Indian mutual fund said he held shares in Meta worth Rs 110 billion as of the end of September 2022. In total, these programs have invested him over Rs 12,300 crore in top technology companies such as Meta, Netflix, Alphabet, Amazon and Microsoft. These stocks have been hit hard by the recent crash.

For example, Meta alone is down more than 30% over the past month, while Alphabet is down about 8%.

That’s not all. Indians remitted $19.6 billion abroad in FY2022. Of that, he invested $300 million in stocks and his ETFs, with more than 40% invested in technology stocks.

Several schemes invest a significant portion of their corpus in technology stocks due to their greater exposure to indices such as the Nasdaq 100 and NYSE FANG. Technology stocks also account for more than 25% weighting in the S&P 500 Index.

Technology stocks have led the U.S. market decline this year, falling as the yield curve rises.

Meta’s shares fell about 25% Thursday, his biggest one-day drop since February, on the back of unexpected earnings prospects amid difficult times for digital advertising companies. Alphabet’s stock has fallen nearly 6% in the past five sessions. Amazon stock fell nearly 20 percent in after-hours trading on Thursday.

Sean Darby, chief global equities strategist at Jefferies, said: “I love US tech companies, but it is tricky right now. Equities are in no man’s land and people are very gloomy. “Giving multiples to growth equities is becoming more and more difficult. The paradox is that the market will value cash flow more highly if we are mistaken and this is a balance sheet and credit default recession rather than a growth recession. They believe the multiples will change when earnings decline, but then interest rates increase and the multiples adjust once more. This is why so many tech stocks do quite well.”

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