Sensex Falls for 4th Day on US Growth Concerns

Mumbai, Mar 12 (PTI) Benchmark BSE Sensex dropped by 72 points on Wednesday, extending its losing run to the fourth day as IT shares retreated due to concerns over US growth.

The 30-share BSE Sensex fell 72.56 points or 0.10 per cent to close at 74,029.76. During the session, it tumbled 504.16 points or 0.68 per cent to touch a low of 73,598.16.

The NSE Nifty slipped 27.40 points or 0.12 per cent to end at 22,470.50. In the session, it fell 168.35 points or 0.74 per cent to hit an intraday low of 22,329.55.

From the Sensex pack, Infosys, Tech Mahindra, Nestle India, Tata Consultancy Services, HCL Technologies, Asian Paints, Axis Bank, Zomato, Hindustan Unilever, and Bharti Airtel were among the laggards.

On the other hand, IndusInd Bank, Tata Motors, Kotak Mahindra Bank, Bajaj Finance, HDFC Bank, ITC, Sun Pharma, Bajaj Finserv and UltraTech Cement were the gainers.

The BSE Smallcap gauge fell 0.48 per cent, while the midcap index slipped 0.57 per cent.

"Persistent uncertainties surrounding global trade and the fear of a US recession continue to influence the domestic market's momentum. Despite the stabilisation in valuation to the 5-year average and signs of improvement in urban and rural demand, investor risk appetite remains subdued," Vinod Nair, Head of Research, Geojit Financial Services, said.

Key concern is whether the ongoing correction happening in the US market can spill over to the global market. The US market is under pressure from weakening economic data and uncertainty over tariff policy, Nair added.

Among the BSE sectoral indices, Focussed IT, IT, Teck, Realty, Telecommunication, Metal, Capital Goods, Services, and Industrial were among the major laggards.

In contrast, Energy, FMCG, financial services, Healthcare, Utilities, Auto, Bankex, Consumer Durables, Oil & Gas, and Power were the gainers.

IT stocks declined more than 5 per cent amid growing concerns over the US economy entering recession.

Shares of Bharti Airtel as well as Reliance Industries settled on a mixed note on the BSE after the two firms announced their partnerships with Elon Musk's SpaceX for providing high-speed internet services in India.

As many as 2,491 stocks declined while 1,494 advanced and 137 remained unchanged on the BSE.

The market capitalisation of BSE-listed firms slipped by Rs 1,40,922.64 crore to Rs 3,92,84,618.08 crore (USD 4.50 trillion).

Meanwhile, official data released after the market hours showed that retail inflation slipped to 3.61 per cent in February mainly due to the decline in the rate of price rise in vegetables and protein-rich items, creating space for the Reserve Bank of India for second reduction in interest rate next month.

The consumer price index-based retail inflation was at 4.26 per cent in January and 5.09 per cent in February 2024.

The year-on-year inflation rate for February 2025 was 3.75 per cent, showed the data released by the National Statistics Office (NSO).

In Asian markets, Tokyo, Seoul, Shanghai and Hong Kong ended on a mixed note.

European markets were trading higher in the mid-session deals on Wednesday. Wall Street ended in the negative zone on Tuesday.

Global benchmark Brent crude oil went up 0.34 per cent to USD 69.80 a barrel.

Foreign Institutional Investors (FIIs) sold equities worth Rs 2,823.76 crore, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 2,001.79 crore on Tuesday, according to the exchange data.

The 30-share BSE Sensex on Tuesday settled down by 12.85 points at 74,102.32. The broader Nifty of NSE advanced 37.60 points to close at 22,497.90.