Indian Stock Market Crashes Amid US Recession Fears
Mumbai, 11th March 2025: The Indian stock market experienced a significant downturn on Tuesday, with the BSE Sensex falling nearly 400 points and the Nifty 50 dropping over 100 points.
This decline is largely attributed to growing concerns over a potential recession in the United States, compounded by a sharp sell-off in major IT stocks. The market opened lower, reflecting a broader trend seen across global markets following a steep decline on Wall Street.
On March 10, US stock markets witnessed their largest single-day drop since 2022, with the S&P 500 and Nasdaq plummeting by up to 4%.
This sell-off was triggered by former US President Donald Trump’s ambiguous comments regarding the likelihood of an economic recession, which heightened investor anxiety about global economic stability. As a result, Gift Nifty futures indicated a weak start for Indian markets, falling by 160 points early in the day.
Kranthi Bathini, Director and Equity Strategist at WealthMills Securities Pvt Ltd, commented on the situation: “Markets are under pressure due to global factors.
The sell-off in the US market has weighed on Indian stocks, especially as foreign institutional investors continue to sell.” He added that while the Nifty index remains below 23,000, overall market sentiment is likely to remain negative.
The IT sector has been particularly hard-hit, with the Nifty IT index dropping by 1.47%, losing over 550 points. Major tech companies such as Infosys, Wipro, and Tata Consultancy Services saw significant declines, contributing to the negative sentiment in the market. Infosys was the biggest loser among them, falling by 3.09%.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that despite the downturn in US markets, India’s performance has been relatively stable.
“While the S&P 500 has fallen significantly in recent weeks, Nifty’s decline has been more moderate,” he stated. He encouraged investors to focus on accumulating high-quality large-cap stocks during this period of volatility.
Market analysts are advising caution as uncertainties surrounding trade policies and potential economic slowdowns continue to loom over investor sentiment.
As of now, both Sensex and Nifty are expected to face challenges in recovering unless there is a shift in global economic conditions.
With ongoing trade tensions and fears of a recession impacting market dynamics, investors are advised to remain vigilant and consider long-term strategies amidst these fluctuations.
