Mumbai: Following a sharp decline in US markets overnight, the Sensex fell nearly 400 points, while the Nifty dropped over 100 points on Tuesday during early trade. The fall is being attributed to investors reacting to growing concerns about a possible recession in the US and a sharp decline in IT stocks. The decline in global markets has been triggered by fears of an economic slowdown and trade tensions. This has impacted the domestic stocks. The situation worsened after major IT stocks in India also saw a steep drop.
US market crash and uncertain global market
US stock markets witnessed their biggest single-day fall since 2022 on March 10. The S&P 500 and Nasdaq plunged up to 4%. The Dow Jones fell 2.08%. Gift Nifty futures fell by 160 points early Tuesday (March 11) morning. According to market analysts, Trump’s trade policies and tariffs have led to uncertainty among investors, businesses, and consumers, triggering a major sell-off. The ongoing trade disputes between the US and major economies such as China, Canada, and Mexico have triggered fears of an economic downturn.
Here’s what happened to Indian IT stocks:
- Infosys was the biggest loser. It fell 3.09% and contributed to 52.65 points to Nifty’s decline.
- Wipro dropped 2.21%, while Mphasis fell 1.88%.
- Coforge declined 1.79%, and L&T Technology Services (LTTS) slipped 1.69%.
- L&T Infotech & Mindtree (LTIM) was down 1.52%, and Tech Mahindra (TECHM) lost 1.41%.
- HCL Tech also declined 1.47%.
- Tata Consultancy Services (TCS), which is usually more stable, also ended lower but with a milder decline of 0.10%.
