Benchmark indices Nifty and Sensex opened the March 11 trading session with steep cuts as all sectors traded in the red mirroring Wall Street’s sharp selloff. A global wave of risk aversion gripped investors after President Donald Trump stopped short of dismissing recession fears amid escalating trade tensions.

The S&P 500 tumbled 2.7 percent, briefly hitting its lowest level since September. The Nasdaq Composite bore the brunt of the sell-off, plunging 4 percent—its steepest drop since September 2022—to close at 17,468.32. Meanwhile, the Dow Jones Industrial Average slumped 890.01 points, or 2.08 percent. Asian stocks followed Wall Street’s lead and tumbled on Tuesday, as mounting concerns over a broadening trade war stoked fears of a U.S. economic slowdown and potential recession. The uncertainty sent jittery investors flocking to the safe-haven Japanese yen.

At 9:20 am, the Sensex was down 426.91 points or 0.58 percent at 73,688.26, and the Nifty was down 132.85 points or 0.59 percent at 22,327.45. About 659 shares advanced, 1976 shares declined, and 116 shares unchanged.

Market experts suggest that global headwinds continue to drag the market sentiment, with the rise in US unemployment rates and tariffs leading to uncertainty, indicating that volatility is here to stay for the near term.

"Ongoing tariff conflicts and growing concerns about a potential federal government shutdown have fueled worries that the U.S. economy might be heading toward a recession. Weaker consumer sentiment, slower consumer spending, and tariff risks continue to weigh on the growth outlook," Devarsh Vakil, Head of Prime Research at HDFC Securities said. "US stocks are also under pressure from a stronger Japanese yen and a spike in bond yields, as investors unwind yen carry trades on expectations of an upcoming interest rate hike in Japan," he added.

The broader market, represented by mid and smallcap indices continued their dismal performance, with the midcap 100 and smallcap 100 indexes falling 0.5 and 2 percent, respectively. Both are down over 24 percent and 27 percent from their peaks, yet analysts remain wary of valuations, warning that further downside may be ahead.

All 13 sectoral indices traded lower with Nifty IT, Energy, and PSU Bank falling 1 percent each. Nifty Auto, Bank, FMCG, Infra, Metal, and Pharma also hovered just below 1 percent. The Realty index fell for a fourth session in a row, down almost a percent lower.

IndusInd Bank shares slipped another 10 percent to hit a fresh 52-week low after the bank reported discrepancies in its derivative portfolio. During an internal review of processes relating to parts of its derivatives portfolio, IndusInd Bank has estimated an adverse impact of 2.35 percent on its net worth as a result of some discrepancies in these account balances, a company filing said on March 10.

Shares of Bharat Electronics Ltd (BEL), a key defense PSU, gained marginally after bagging fresh orders worth Rs 843 crore, pushing its total order inflows for FY25 to Rs 14,567 crore. The new contracts span RF seekers, radar upgrades, vessel and air traffic management systems, electro-optic repair facilities, spares, and services.

NTPC, along with its subsidiary NTPC Green Energy, signed multiple agreements worth Rs 96,000 crore with the Chhattisgarh government. The agreements include nuclear, pump hydro, and renewable projects based on solar, wind, and hybrid sources in the state. Shares of NTPC Green darted up 2.4 percent.

"Yesterday, we expected the market to decline toward 22,245, with 22,470 as a key level to watch. The drop was halted near 22,470, mainly because the downward momentum kicked in late. Today’s session opened lower as the market attempts to reach the earlier target. However, if the 22,300–22,350 zone holds, a rebound could be on the cards. On the other hand, failing to break above 22,520 on the way up or slipping below 22,245 could trigger a deeper fall toward 21,720," Anand James, Chief Market Strategist at Geojit Financial Services said.

BPCL, ICICI Bank, Sun Pharma, ONGC, and Maruti Suzuki were the top gainers on the Nifty. Laggards on the Nifty were IndusInd Bank, Infosys, Wipro, M&M, and Cipla.