The Indian stock market experienced significant losses in the March 11 trading session, mirroring the sharp sell-off seen on Wall Street. The Sensex plunged by nearly 450 points, while the Nifty fell below the 22,350 mark, as concerns over a potential U.S. economic slowdown and escalating trade tensions shook investor confidence globally.
The global risk-off sentiment intensified after former U.S. President Donald Trump expressed concerns about the economic outlook, refusing to rule out the possibility of a recession. This, coupled with growing fears over escalating trade tensions, caused the S&P 500 to fall 2.7 percent and the Nasdaq to drop by 4 percent, its largest fall since September 2022. The Dow Jones Industrial Average also tumbled by 890 points, or 2.08 percent, adding to the wave of uncertainty.
Asian markets, including the Indian bourses, followed Wall Street’s negative trajectory. The Sensex opened with a loss of 426.91 points, or 0.58 percent, at 73,688.26, while the Nifty dropped by 132.85 points, or 0.59 percent, to 22,327.45. Market breadth was notably negative, with 1,976 stocks declining, compared to 659 advancers.
Experts attribute the decline to multiple factors: rising unemployment in the U.S., persistent tariff disputes, and concerns over a potential U.S. federal government shutdown. These developments, along with a strengthening Japanese yen and climbing bond yields, have raised alarms about a looming recession.
“The U.S. economy is facing challenges from weaker consumer sentiment, slower spending, and tariff risks, which are all contributing to a dimmer growth outlook,” said Devarsh Vakil, Head of Prime Research at HDFC Securities. Additionally, the strong Japanese yen and rising bond yields are pressuring global markets as investors unwind yen carry trades, anticipating an interest rate hike by the Bank of Japan.
The global downturn had a widespread impact on Indian sectors, with all 13 sectoral indices trading in the red. The Nifty IT, Energy, and PSU Bank indices each fell by 1 percent, while other sectors like Auto, FMCG, Metal, and Pharma also experienced losses.
IndusInd Bank saw a sharp 10 percent decline after reporting discrepancies in its derivative portfolio, sending shares to a new 52-week low. On a brighter note, Bharat Electronics (BEL) gained marginally after securing fresh orders worth Rs 843 crore, and NTPC Green Energy surged by 2.4 percent after signing agreements with the Chhattisgarh government for renewable energy projects.
As for technical indicators, market analysts pointed to key levels for investors to watch. According to Anand James, Chief Market Strategist at Geojit Financial Services, if the Nifty holds the 22,300–22,350 zone, there could be a potential rebound, but a failure to break above 22,520 or a slip below 22,245 could trigger a deeper fall.
In terms of stock performances, BPCL, ICICI Bank, Sun Pharma, ONGC, and Maruti Suzuki emerged as the top gainers on the Nifty, while IndusInd Bank, Infosys, Wipro, M&M, and Cipla were among the worst performers.
As global uncertainties continue to weigh on market sentiment, the outlook for the near term remains volatile, with further losses or potential rebounds depending on how the broader economic concerns unfold.
