HFCL, Sterlite Tech, MTAR hit 5% lower circuits as AI stocks slide
By Rohit SharmaMarkets Analyst, Peepals Business
Representative image: sergeitokmakov / Pixabay
HFCL, Sterlite Technologies and MTAR Technologies hit 5% lower circuits on 2 November 2026 as a US tech sell-off hit Indian AI-linked stocks, even as the market rose.
What Happened
Shares of HFCL, Sterlite Technologies and MTAR Technologies were locked at their 5% lower circuits on the BSE on Monday, 2 November 2026, falling for a second straight session even though the broader market was firm. HFCL ended at Rs 219.75, Sterlite Technologies at Rs 786.25 and MTAR Technologies at Rs 6,495.35. The three stocks were 22% to 25% below the 52-week highs they reached in October. Other Indian stocks linked to artificial intelligence, such as E2E Networks, also fell as a sell-off in US technology shares spread to India.
Key Facts
- HFCL: Rs 219.75 on the BSE, down 5%, the most allowed in a day under its price band.
- Sterlite Technologies: Rs 786.25, down 5%.
- MTAR Technologies: Rs 6,495.35, down 5%.
- All three were 22% to 25% below their October 2026 52-week highs.
- It was the second straight day of losses for the three stocks.
- E2E Networks hit its 5% lower circuit for a second straight session, and ESDS Software Solutions fell more than 3%, according to market reports.
- The fall came while the wider market was firm, as falling oil prices on hopes of a US-Iran deal lifted other shares.
Why It Matters
A lower circuit is the maximum fall a stock is allowed in one trading day under the exchange's price band. When a stock is "locked" at its lower circuit, there are sellers but no buyers at higher prices, so trading largely stops at that level. Three stocks hitting the limit together, on a day when the broader market rose, shows that the selling was about these companies' theme rather than the market as a whole.
That theme is artificial intelligence. India has few listed companies that sell AI itself, so investors have used makers of optical fibre, networking gear, data-centre equipment and cloud services as stand-ins for the AI boom. HFCL, Sterlite Technologies, MTAR Technologies and E2E Networks have all been traded by investors as part of this AI and data-centre theme. These stocks rose sharply during 2026 as global spending on AI data centres grew.
The same link now works in reverse. Reports tie the fall to a sell-off in US technology shares, driven by worries over how much large companies are spending on AI and whether that spending will pay off. On the same day, the Japanese memory-chip maker Kioxia fell sharply in Tokyo after a cautious outlook. When doubts about AI spending grow abroad, Indian stocks bought as AI proxies tend to be hit quickly, especially after a big run-up.
For investors, the moves are a reminder that theme-driven stocks can fall as fast as they rise. Stocks that have gained the most in a year often see the sharpest falls when sentiment turns. This is a description of what happened, not a recommendation to buy or sell.
Peepals calculation: A 5% lower circuit means each stock closed at 95% of its previous close. That puts the previous closes at about Rs 231.3 for HFCL (219.75 ÷ 0.95), about Rs 827.6 for Sterlite Technologies (786.25 ÷ 0.95) and about Rs 6,837.2 for MTAR Technologies (6,495.35 ÷ 0.95). Our calculation from the reported figures.
| Stock | BSE price on 2 November 2026 | Change |
|---|---|---|
| HFCL | Rs 219.75 | down 5% (lower circuit) |
| Sterlite Technologies | Rs 786.25 | down 5% (lower circuit) |
| MTAR Technologies | Rs 6,495.35 | down 5% (lower circuit) |
Impact
Short-term: AI-linked Indian stocks are likely to stay sensitive to moves in US technology shares and to news about AI spending by large global companies. Stocks locked at lower circuits can be hard to sell until buyers return.
Long-term: Whether these companies can keep their gains will depend on actual orders and earnings from data-centre and AI demand, rather than on the theme alone.
Who is affected: Shareholders of HFCL, Sterlite Technologies, MTAR Technologies, E2E Networks and similar companies, including retail investors who bought into the AI theme in 2026, and mutual funds holding these stocks.
Key Takeaway
HFCL, Sterlite Technologies and MTAR Technologies hit 5% lower circuits on 2 November 2026 as a US tech sell-off hit India's AI-linked stocks, even while the wider market rose.
Questions and Answers
Why did HFCL shares fall on 2 November 2026?
HFCL fell 5% to Rs 219.75 on the BSE, its lower circuit, as a sell-off in US technology shares over AI spending worries spread to Indian AI-linked stocks.
What is a lower circuit in the stock market?
It is the maximum fall a stock is allowed in one trading day under the exchange's price band. When a stock is locked at its lower circuit, there are sellers but no buyers above that price.
Which other stocks fell with HFCL?
Sterlite Technologies and MTAR Technologies also hit 5% lower circuits, E2E Networks hit its lower circuit for a second session, and ESDS Software Solutions fell more than 3%.
How far are these stocks below their highs?
HFCL, Sterlite Technologies and MTAR Technologies were 22% to 25% below the 52-week highs they reached in October 2026.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Rohit Sharma, Markets AnalystCovers Markets Watch and more for Peepals Business. All stories by Rohit Sharma
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Rohit Sharma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
