Indian Shares Tumble Amid Tariff Fears and Covid Discovery

Market Decline: Indian shares took a significant hit as export-oriented IT stocks faced intense selling pressure due to weak U.S. economic indicators and tariff concerns. The BSE Sensex and NSE Nifty saw dramatic drops, signaling investor anxiety.

Date: 24-02-2025

AI Rating: 4

**Market Decline Overview**: Indian shares saw substantial losses on Monday, particularly in the export-oriented IT sector, which was heavily affected by renewed growth anxiety fueled by weak U.S. economic data and the potential for reciprocal tariffs from the U.S. administration against countries like India and China. The BSE Sensex and NSE Nifty indices dropped significantly to their lowest levels in eight months, reflecting a concerning trend in the market. **Impact on IT Sector**: Major IT stocks such as Infosys, TCS, HCL Technologies, and Wipro experienced declines ranging from 3-4 percent. This sector's underperformance is critical as it signifies broader concerns regarding corporate earnings and future growth potential, particularly in an environment of increasing trade tensions and economic uncertainty. **Tariff Concerns**: The negative impact of potential tariffs has created uncertainty among investors, leading to a further decline in market sentiment. Tariffs can significantly affect profitability for companies engaged in international trade, thereby causing fluctuations in stock prices. **Investor Sentiment Deterioration**: Additional concerns arose with reports of a new coronavirus strain found in bats, which has further made investors jittery about economic recovery and stability. The combination of these factors has contributed to a negative market breadth, with significantly more shares declining than advancing. Overall, the combination of declining indices, weakening corporate earnings prospects, and external geopolitical factors creates an environment ripe for continued stock price volatility in the coming weeks.

Stocks: INFY TCS HCLTECH WIT