Sterlite Tech shares slide 5% after rallying 56% in one month. Here's why

Synopsis

Sterlite Technologies shares hit the lower circuit on Monday as a sharp global selloff in AI and technology stocks dented investor sentiment. The decline comes after the stock's stellar 474% rally in 2026 and a 56% gain over the past month, with shares locked at Rs 588.30 on the NSE amid profit-booking and weakening AI optimism.

Shares of Sterlite Technologies dropped 5% to hit the lower circuit on Monday, after a massive 56% surge in one month and a whopping 474% rally so far in 2026, as a pause in the global AI optimism dampened sentiment.

Shares of the company remained locked in the lower circuit at Rs 588.30 apiece on NSE in the morning trading hours of Monday.

AI rally slams the brakes

The sharp plunge in Kospi reflects the sharp pause in the AI rally, as too much of the benchmark index’s earlier momentum had become tied to the performance of a small group of AI-linked stocks. Samsung Electronics and SK Hynix together account for nearly half of the KOSPI's weighting and have contributed roughly two-thirds of the benchmark's gains this year.

Also read: Kospi crashes 9%, trading halted for 20 minutes, as chip rout deepens; Samsung, SK Hynix worst hit

Sterlite Technologies shares had emerged as one of the biggest multibaggers of 2026, riding on explosive demand for AI-linked data centre infrastructure. Sterlite, the optical-fiber maker owned by the Vedanta Group, was seen as the “poster child” for the AI boom. This came amid expectations that the world’s AI expansion needs massive amounts of high-speed connectivity infrastructure, and optical fibre is becoming the backbone of that ecosystem.

The company late in May announced that its subsidiary has secured a multi-year supply agreement valued at $1.11 billion from a global hyperscaler for AI-ready data centre infrastructure projects in the US. Hong Kong-based CLSA had said that this significantly strengthens Sterlite’s positioning in AI data centres while improving medium-term growth visibility. It expected the order to reinforce Sterlite’s competitiveness in global markets, while maintaining an “Outperform” rating on the stock.

However, the sharp crash in tech stocks led to rising worries that the AI rally was fizzling out, which may have led to the downtrend in Sterlite Tech shares today.

Also read: Hidden AI Winners

Sterlite Tech share price

The company currently has a market capitalisation of nearly Rs 28,719 crore.

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