New Delhi, March 18 -- The Nifty IT index has officially entered bear market territory, correcting over 21 per cent from its record high of 45,995.80, which it hit in December 2024. The sharp decline reflects growing concerns over the sector's growth prospects, primarily driven by fears of a US recession and cautious client spending. Despite a broader market recovery in March, the Nifty IT index has continued to underperform, losing 2.3 per cent this month alone.

The index has shed 16 per cent so far in 2025, extending the weakness seen in the previous months. In February, the IT index pack fell by 12.5 per cent while it lost 1.5 per cent in January. The downward trend is largely attributed to demand concerns from North America, the larg...