India Stock Market Continues To Dwindle: Nifty Down, IT Index Falls 4%

Indian’s Benchmark equity indices, BSE Sensex and Nifty50 have become flat today (12th March) right after early gains. Sensex tumbles over 750 points from its intraday high and the Nifty slips below the 22,400 mark, as a result of investor sentiment remaining fragile amid global trade tariff uncertainties.

The BSE Sensex fell 793.99 points from the day's high to hit a low of 73,598.16, while the NSE Nifty dropped 247.85 points to a low of 22,329.55. This coupled with selling pressure in IT stocks. Infosys, Wipro, and HCL Technologies appeared sluggish in the Nifty 50 pack.

Shares of information technology (IT) companies suffered fall of more than 3 per cent in Wednesday’s intra-day trade on growth concerns. The IT index hit an 8-month low.  This is based on concerns that the US economy may fall into a recession by the year-end amid US President Trump's tariff war with trading partners.
 
Motilal Oswal Financial Services (MOFSL) downgraded Infosys to Neutral and Wipro to Sell. Share price of Wipro dropped by 6% to Rs 262.40, while, Infosys shares fell by 5% to Rs 1,580.10 on the NSE in intra-day trade.
 
The brokerage firm set Infosys’s target price of Rs 1,650 per share and Wipro’s at Rs 240 per share. For TCS, MOFSL set target price of Rs 4,050 per share.

Trade War to blame for uncertainties of global market?

Global markets remain uncertain over escalating trade tariff concerns. This aggravated after US President Trump indicated a sharp increase in tariffs on steel and aluminium imports from Canada. Trump initially proposed to double the levy to 50%, however later he hinted at a reconsideration. Experts warn that reciprocal tariffs set to take effect in April could further dampen market sentiment.

Markets globally are witnessing uncertainty due to the lack of clarity on trade policies. 

Coupled with it, possibility of US recession looms large. Trump himself couldn’t rule out the possibility of a US recession in 2025. In a recent interview to Fox News, he said, "There is a period of transition, because what we are doing is very big – we are bringing wealth back to America. It takes a little time." This led market participants to remain wary of the potential economic impact of policy shifts under Trump administration.