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Tech companies across the world were under massive sell-off pressure amid broader market decline. Three days of heavy selling in technology stocks has erased about $1.5 trillion in market value from the Nasdaq 100 Index.

The tech-heavy benchmark sank 4% on Monday, extending its decline to 10% since the Federal Reserve raised interest rates half a percentage point last week and Chair Jerome Powell signaled the Fed would continue hiking at that pace. That’s the biggest three-day drop for the index since September 2020, according to data compiled by Bloomberg.

The Nasdaq 100 has fallen 25% this year amid a jump in US Treasury yields and mounting concerns that higher interest rates and soaring inflation could tip the economy into recession. Megacap technology stocks haven’t been immune from the selloff. Microsoft sank below $2 trillion in market value on Monday for the first time since June 2021, with the stock now down 21% this year.

Cybersecurity stocks Crowdstrike Holdings Inc., Zscaler Inc. and Okta Inc. are among the biggest Nasdaq 100 decliners in the past three days with each falling more than 20%.

Zerodha co-founder and CEO Nithin Kamath on Tuesday said the sharp fall in the stock prices of high growth tech companies across the globe feels like the dot-com boom.

"It is ridiculous how quickly the expectations changed from growth at all costs to generating free cash flows to survive the next 2 to 3 years since raising funds might be tougher. It is almost impossible for businesses to quickly adapt, especially the larger ones," he said.

"The other issue is that ESOPs given over the last 3 years will mostly be out of money and employee net worth would have taken large haircuts. This could affect the morale of many, which will make it even harder for those running the business," Kamath added.

The Zeordha CEO said India has weathered the storm mostly because not many such companies are listed & many private ones raised a lot of money last year.

"While listed Indian high growth tech stocks too have fallen quite a bit, they are very few and hence haven't had a large impact on the rest of the markets. Indian private markets got lucky with all the money that got diverted from China to India last year," he said.

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