Stock Market Plummets Amid Global Economic Fears

NEW DELHI, India — The stock market opened lower on Tuesday, March 11, 2025, as fears of global economic uncertainty led to significant selling across major sectors. The benchmark BSE Sensex dropped 451 points, or 0.61%, to 73,693, while the NSE Nifty fell 132.95 points, or 0.59%, to 22,327.35 by 9:25 AM.

This downturn follows a sell-off in Asian markets, attributed to a steep decline in Wall Street the previous night. Concerns were heightened after President Donald Trump refrained from assuring investors against a potential U.S. recession linked to his tariff policies.

Among the 30 Sensex stocks, IndusInd Bank experienced the steepest fall, plunging 10% to ₹810.55 at market open. Other notable declines included Zomato, down 2.01% to ₹206.95, and Tata Steel, which decreased by 1.95% to ₹148.00. Only three Sensex stocks—Sun Pharmaceutical Industries, ICICI Bank, and Kotak Mahindra Bank—reported gains.

The Nifty sectoral indices mirrored this decline, with the Nifty IT Index dropping 1.82% to 36,960.15. The Nifty Midsmall IT and Telecom sectors fell 1.49%, and Financial Services experienced a 0.99% decline, illustrating widespread weakness across the board.

On March 10, the stock market had already settled in the red; the BSE Sensex closed 217.41 points down at 74,115.17, while the Nifty finished 92.20 points lower at 22,460.30. According to Bajaj Broking Research, the downturn was spurred by concerns over sharp declines in U.S. stock futures and renewed trade tensions.

Kunal Kamble, Senior Technical Research Analyst at Bonanza, noted that “the Nifty faced resistance and formed a shooting star candlestick pattern, indicating bearish sentiment.” He explained that the index is expected to struggle below 22,300 and may not exceed 22,000 during Tuesday’s trading.

Additionally, IndusInd Bank concluded the previous day down 3.86% at ₹900.60, and other major losers included Zomato at ₹211.20, representing a 2.58% drop. The Nifty Midcap 100 and Smallcap 100 indices fell approximately 1.53% and 1.97%, respectively, further emphasizing the broader market’s challenges.

In the context of sector performance, the Nifty Midsmall IT & Telecom Index saw a decline of 2.21%, while the Realty and Oil & Gas indices fell by 2.04% and 1.90%, respectively. Bajaj Broking Research pointed out that with the exception of the FMCG sector, all major sectoral indices ended the session in the red.

For investors, the current environment shows mixed signals; while Foreign Institutional Investors (FIIs) were net sellers at ₹485.41 crore on Tuesday, Domestic Institutional Investors (DIIs) made net purchases of ₹263.51 crore. This stark contrast illustrates the ongoing volatility in the market.

The market tumble comes as OPEC anticipates potential declines in future oil prices. The benchmark Brent Crude was down 0.10% to $69.21 per barrel, while WTI Crude decreased by 0.21%, reaching $65.89 per barrel.

Analysts suggest that investors should brace for continued volatility and monitor key economic indicators, including the upcoming U.S. and India CPI data and India’s IIP data, to better assess potential recovery points.