Netweb Technologies and Anant Raj Rebound 10% Amid AI Market Jitters

Shares of Netweb Technologies and Anant Raj surged by up to 10 percent, recovering from a recent downturn as both companies sought to address investor concerns.

In official statements, they clarified that China’s low-cost AI startup, DeepSeek, presents opportunities rather than threats to their businesses.

Following these reassurances, Netweb Technologies saw a 10 percent increase, while Anant Raj climbed 9 percent, regaining some of the steep losses incurred due to the global AI stock rout triggered by DeepSeek’s emergence.

Despite this rebound, Anant Raj has seen its stock decline over 42 percent in the past three sessions, while Netweb Technologies lost half its value during an eight-day losing streak before the recent recovery.

Companies Address AI Industry Concerns

Anant Raj stated in an exchange filing that platforms like DeepSeek will increase demand for data centers, contrary to fears that decentralized processing could reduce the need.

Though primarily a real estate firm, Anant Raj has expanded into data center and AI-driven solutions through its subsidiary, Anant Raj Cloud.

Similarly, Netweb Technologies reaffirmed its strong market position in an exchange filing, stating, “As a leader in high-end computing, with AI as an important vertical, we view the emergence of DeepSeek as a significant opportunity for our business growth.”

Netweb highlighted that DeepSeek promotes inclusive AI adoption, thereby expanding the market.

Their AI solutions provide multi-GPU/APU platforms for both inference and training, aligning with local government and enterprise interests in developing AI solutions within India.

Additionally, Netweb remains confident in its robust technological and financial fundamentals.

Financial Strength and Market Position

For the first nine months of the 2025 financial year, Netweb Technologies reported a 60 percent revenue growth, with an order book valued at ₹360.30 crore.

The company also emerged as the lowest bidder (L1) in projects worth ₹348 crore and has a product pipeline exceeding ₹3,800 crore.

“We remain focused on surpassing our guidance and solidifying our leadership in the high-end computing space,” Netweb stated.

AI-Driven Market Trends and Future Prospects

On the other hand, Anant Raj cited media reports predicting significant growth in India’s data center capacity due to increasing digitization and data localization trends.

“As AI applications move closer to the end user, the demand for distributed computing infrastructure will increase. We believe this trend will drive the need for more data centers, not fewer,” the company said.

Anant Raj emphasized that its real estate business remains unaffected by AI developments.

The company is focused on colocation services, with most of its capital expenditure dedicated to increasing data center infrastructure and rack-level capacity.

It does not currently offer Platform as a Service (PaaS) or Software as a Service (SaaS), and its cloud offerings do not integrate AI elements.

“Therefore, we do not expect technological advancements related to data computing or AI to impact our offerings,” Anant Raj added.

Stock Performance Amid Market Selloff

Shares of Netweb Technologies surged by 10 percent to ₹1,607.65, while Anant Raj also climbed 10 percent to ₹587.95.

The broader AI-driven market selloff had earlier led to sharp declines in domestic stocks, including Anant Raj, Netweb Technologies, and Zen Technologies, which fell as much as 20 percent in Tuesday’s trading session.

These stocks had already corrected 40-50 percent from their 52-week highs due to rising negative sentiment in global markets, compounded by the impact of DeepSeek’s emergence.

DeepSeek’s disruptive AI model caused Nvidia’s shares to plummet, wiping out $589 billion in market capitalization—the largest single-day valuation loss for any company.

Expert Insights on Market Volatility

Chokkalingam, Founder and Director at Equinomics Research, commented that the correction in high-growth AI stocks was expected due to their high valuations.

“If a company is commanding 50 times P/E valuations, the profit growth should be around 25-30 percent to justify valuations. If a company fails to meet this expectation, the market punishes it,” he said.

Shares of Anant Raj fell to a lower circuit limit of 20 percent at ₹534.45 on Tuesday, following a 17 percent decline on Monday. The stock has lost over a third of its value in two sessions and is down 45 percent from its 52-week high.

Similarly, Netweb Technologies declined by 10 percent to ₹1,460.35 on Tuesday after closing at ₹1,622.60 on Monday, marking an 11 percent drop.

The stock has fallen over 52 percent from its 52-week high of ₹3,060. Zen Technologies also suffered a 14 percent decline, closing at ₹1,495.10, down from ₹1,743.35 the previous day.

Long-Term AI Market Outlook

Kranthi Bathini, Director of Equity Strategy at Wealthmills Securities, noted that futuristic businesses with delayed cash flow realization are currently experiencing major setbacks.

“Anant Raj had strong momentum for months, but is now facing significant market pressure,” he said.

Meanwhile, the global market rout impacted the fortunes of the world’s 500 richest individuals, who collectively lost $108 billion.

Nvidia co-founder Jensen Huang saw his fortune drop by $20.1 billion—a 20 percent decline—while Oracle’s Larry Ellison lost $22.6 billion, representing a 12 percent decrease.

Despite short-term turbulence, AI-related stocks are expected to recover as efficiency improvements drive further AI adoption.

Subho Moulik, Founder and CEO of Appreciate, suggested that companies such as Broadcom and Micron Technology could present attractive investment opportunities after the recent dip.

“Cloud services like Amazon Web Services will also benefit, as their infrastructure supports the creation of sophisticated AI models closer to consumers,” Moulik added.