TD Power, HFCL, Sterlite Tech Shares Fall Up to 15% as Global AI Selloff Hits India; Why Are These Stocks Falling?

Shares of TD Power Systems, HFCL, Sterlite Technologies and other companies linked to power and data centre infrastructure came under heavy selling pressure on Friday, November 6, as the global selloff in artificial intelligence (AI) stocks spread to India.

TD Power Systems plunged over 15% to around ₹569 in morning trade, while Thermax also fell sharply. HFCL hit its 5% lower circuit at ₹209.95, while Sterlite Technologies declined 5% to around ₹719. CG Power, Hitachi Energy India and Netweb Technologies were among the other stocks facing selling pressure.

The fall comes after several of these companies recorded strong gains in 2026, driven partly by expectations of rising investment in AI data centres. HFCL had climbed more than 370% from its January low to its October peak, while Sterlite Technologies had gained over 1,100% from its January low to its October high.

However, concerns over whether global technology companies can maintain their spending on AI infrastructure have led investors to reassess these stocks.

The selling followed a sharp decline on Wall Street on Thursday, when the Nasdaq Composite dropped around 5.5% and the S&P 500 lost about 4.4%. The weakness continued across Asian technology markets on Friday.

Why Are TD Power, HFCL and Other AI-Linked Stocks Falling Today?

The latest correction comes as investors question whether technology companies can continue spending billions of dollars on AI infrastructure at the same pace.

Large technology companies have been investing heavily in data centres to support AI applications. These facilities require electricity, power equipment, cooling systems, networking infrastructure and high-performance computing systems.

This spending has created business opportunities for several Indian companies. TD Power Systems manufactures generators used in industrial and power applications. Thermax supplies energy and industrial infrastructure solutions, while CG Power and Hitachi Energy India operate in the electrical equipment segment.

HFCL and Sterlite Technologies supply optical fibre and networking equipment used in telecom and data infrastructure. Netweb Technologies manufactures servers and high-performance computing systems.

Although these companies operate in different segments, investors have increasingly linked their growth prospects to the expansion of AI data centres.

Concerns have now emerged over whether the planned investment in these projects will translate into the expected returns.

The US midterm election results have added to uncertainty, with the possibility of greater scrutiny of data centre projects over electricity consumption, water usage and environmental concerns.

Any delay in new projects or reduction in planned spending could affect future demand for equipment supplied by companies operating across the data centre industry.

However, there is no confirmed indication that Friday's decline was caused by major order cancellations at the affected Indian companies.

TD Power, HFCL, Sterlite Tech Share Price History

The latest correction comes after a strong rally in several power and data centre-linked stocks earlier this year.

TD Power Systems shares had touched a 52-week high of ₹856 on October 5, 2026, after rising from a low of ₹301.08 in January. The stock fell to around ₹569 on Friday, leaving it nearly 34% below its October peak. It had also declined more than 8% in the previous trading session.

HFCL shares rose from a 52-week low of ₹59.83 on January 23 to ₹282.10 on October 21, a gain of more than 370%. However, the stock has since lost ground. At ₹209.95 on Friday, it was trading nearly 26% below its October high.

Sterlite Technologies recorded an even sharper rally. The stock climbed from ₹84.65 in January to a 52-week high of ₹1,054.45 on October 7. It fell to around ₹719 on Friday, nearly 32% below that peak.

Despite the recent declines, all three stocks remained well above their January lows.

The companies have also reported business opportunities linked to data centre and network infrastructure spending.

HFCL had reported an order book of ₹28,900 crore during its Q2 FY27 earnings conference call and highlighted demand from AI infrastructure, data centres and telecom network expansion.

Sterlite Technologies has identified North America as an important market for optical fibre demand, supported partly by investments in AI data centres and network infrastructure.

The latest correction comes as investors weigh these growth opportunities against concerns over valuations and the possibility of slower global AI spending.

For now, developments in US technology stocks, announcements on data centre investments and changes in infrastructure spending plans will remain important triggers for these Indian companies.

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