DeepSeek Triggers US Selloff, PM Modi Speaks To Trump, RBI Measures For Liquidity | Rise With Profit
Jan 28, 2025 - ndtvprofit.com
The launch of DeepSeek, a Chinese AI startup, has caused significant disruption in global tech markets. Founded by Liang Wenfeng, DeepSeek's open-source large language model rivals offerings from major companies like OpenAI and Meta but at a lower cost. This development has raised concerns about US technological dominance, as the model operates on less-advanced chips, circumventing US semiconductor export restrictions to China. The launch led to a selloff in global tech stocks, with major US AI-related companies like Nvidia, Meta, and Microsoft experiencing declines. Nvidia's market capitalization dropped by $593 billion, marking a record one-day loss on Wall Street. The Nasdaq Composite fell over 3%, while the S&P 500 decreased by 1.5%. Meanwhile, bond yields fell, and the dollar rose in the US.
In other news, India's Reserve Bank announced measures to boost liquidity, including open market operations and repo auctions, potentially infusing Rs 1.5 lakh crore into the banking system. These actions precede an anticipated interest rate cut. Additionally, 360 One WAM Ltd. plans to acquire Batlivala & Karani Securities India Pvt. for Rs 1,884 crore, following its acquisition of ET Money in 2024. The acquisition involves a stock swap and cash transaction, pending regulatory approval.
Key takeaways:
The launch of DeepSeek, a Chinese AI startup, triggered a selloff in global tech stocks, impacting major US AI-related companies like Nvidia, Meta, and Microsoft.
DeepSeek's open-source large language model challenges US technological dominance by running on less-advanced chips, bypassing US semiconductor export restrictions to China.
The Reserve Bank of India announced special measures to boost liquidity in the banking system, including open market operations and variable rate repo auctions.
360 One WAM Ltd. will acquire Batlivala & Karani Securities India Pvt. for Rs 1,884 crore, subject to regulatory approvals.
