Stock Market LIVE: Nifty IT Index Hits 8-Month Low as Nifty Dips Below 22,400 Amid Tech Sector Decline

The Indian stock market is experiencing a downward trend as the afternoon session unfolds, with the Nifty 50 dipping below the crucial 22,400 mark. This decline is largely attributed to significant selling pressure in the tech sector, which has faced two consecutive days of losses. The Nifty IT Index has fallen over 3%, nearing its lowest point in the past eight months.

Key Economic Indicators to Monitor

Upcoming Inflation Data: Later this week, India will unveil its Consumer Price Index (CPI) for February 2025. January’s headline inflation dropped to 4.31%, marking the lowest year-on-year figure since August 2024.
Tariff Developments: In a surprising move, U.S. President Donald Trump has opted not to increase tariffs on Canadian steel and aluminum imports to 50%. This decision came just hours after his initial announcement to double import duties, following Ontario’s imposition of a 25% tax on electricity exports to the U.S. Nonetheless, the 25% tariff will still be enforced starting from March 12.
Foreign Institutional Investors (FIIs) Activity: The trend of foreign institutional investors selling off equities continues in the Indian market. In March 2025 alone, they have divested Rs 18,810.74 crore, marking the sixth consecutive month of net sales. The highest selling occurred in October, shortly after the Nifty and Sensex reached their all-time highs.

Market Performance Highlights

Nifty 50 Decline: As of 11:53 AM IST on March 12, the Nifty 50 has been making lower lows, primarily dragged down by fears of a potential U.S. recession. In contrast, banking stocks have shown resilience, with several trading in the green.
Tech Sector Struggles: The Nifty IT Index is facing significant challenges, down more than 3%. Major companies like Infosys, HCL Tech, Wipro, and TCS are all experiencing declines of 3-4% each. Concerns over revenue growth, macroeconomic uncertainties, and recent brokerage downgrades are contributing to this downturn.
IndusInd Bank on the Rise: In a surprising turnaround, IndusInd Bank shares surged nearly 15% from their day’s low to Rs 694.70, making it the top gainer in the Nifty 50. This follows a substantial 27% drop in share price just a day earlier.

Top Gainers and Losers Overview

Gainers: IndusInd Bank, Tata Motors, Kotak Bank, Trent, and BPCL have emerged as the leading gainers in the Nifty 50 on March 12.
Losers: On the flip side, Wipro, Infosys, HCL Technologies, TCS, and Dr Reddy’s Lab have been among the major losers as the tech sector struggles.

Market Opening Updates

Morning Market Sentiment: The Nifty 50 opened 72 points higher at 22,569, while the S&P BSE Sensex gained 264 points to reach 74,366.
Bharti Airtel’s Strategic Move: Bharti Airtel has entered into a partnership with SpaceX to offer Starlink satellite internet services in India, pending regulatory approval. This collaboration could see Airtel retailing Starlink equipment and providing services to various businesses.
Asian Markets Overview: Despite a decline in U.S. markets overnight, Asian markets are showing stability. The 25% tariff on Canadian metals is set to take effect today. Notably, Japan’s Nikkei 225 has seen a slight increase of 0.03%, while South Korea’s Kospi rose by 1.33%.