Stock Market Down: Indian stock markets witnessed a sharp decline on Wednesday, March 12. The Sensex fell 793.99 points from its day's highest level to a low of 73,598.16. At the same time, the Nifty fell 247.85 points to 22,329.55. The biggest reason for this decline was the heavy selling in IT stocks. Big stocks like Infosys, Wipro and HCL Technologies were among the top losers on Sensex and Nifty.
3 main reasons behind the fall of the stock market-
1. Fear of trade war spoiled the mood
Global stock markets are currently restless due to fears of trade war. This restlessness increased further when US President Donald Trump hinted at increasing tariffs on steel and aluminum coming from Canada. He first proposed doubling this tariff to 50 percent, but indicated to reconsider it. Analysts say that the market sentiment may weaken further after the reciprocal tariff is implemented in April.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, "Uncertainty over trade policy is putting pressure on stock markets across the world. If reciprocal tariffs are implemented, the situation may worsen. In such a situation, the possibility of sustainable recovery in the market will be reduced."
2. Waiting for many important economic data
Investors are waiting for many important data related to the Indian and US economy to come out. Due to this, an atmosphere of caution prevails in the market. Meanwhile, foreign institutional investors (FIIs) have sold about Rs 4,17,216 crore so far in the current financial year. Prashant Tapse of Mehta Equities says that this selling has increased the pressure on the market.
3. Fear of recession in America
US President Donald Trump has not ruled out the possibility of a recession in 2025. In a recent interview to Fox News, he said, "This is a period of change, because what we are doing is very big. We are bringing money back to America. It takes some time." Market experts believe that policy changes may affect the US economy, which will keep the global markets volatile.
What does the technical chart say?
According to Anand James, Chief Market Strategist, Geojit Financial Services, the market will remain volatile in the near future. He said that Nifty has got strong support in the zone of 22,350 to 22,300, after which a slight recovery was seen. But, until Nifty stabilizes above 22,520, it may be risky to chase the uptrend.
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