IT stocks drag indices as TCS Q1 disappoints and global trade worries rise
The Indian stock market trades lower on July 11, 2025. This is the second straight day of losses. Weak results from top IT companies and global trade tensions are pulling down key indices. The overall mood in the market stays cautious.
Current Market Snapshot
The BSE Sensex is down by around 346 points and trades near 82,854.
The Nifty 50 is also in the red, down about 121 points, trading near 25,262.
This decline reflects worries among investors. Pre-market indicators such as the GIFT Nifty show weakness early in the day, signaling that traders expect a negative opening.
Main Reasons Behind the Decline
IT Sector Under Pressure
The IT sector is facing the most selling pressure. Tata Consultancy Services (TCS), one of the biggest IT firms in India, posts its Q1 results. While the profit is up by 6% compared to last year, revenue growth is weak. In constant currency terms, revenue falls by over 3%.
This shows that overseas clients are cutting down on tech spending. As a result, the stock of TCS falls by over 2%. This drop affects investor confidence in the entire IT sector. Stocks of Infosys, Wipro, HCL Tech, and Tech Mahindra also fell between 1.5% and 3%.
Global Trade Concerns
New trade tariffs announced by former US President Donald Trump create more uncertainty. A 35% tax is placed on Canadian goods, and there are hints that more countries, including India, may face similar duties.
This raises fears that global trade may slow down. Export-heavy sectors in India, such as IT and manufacturing, are at risk. As a result, many investors reduce exposure to global-facing Indian companies.
Sector-Wise Performance
Information Technology (IT)
The IT sector sees the biggest losses. Concerns over weak global demand and reduced tech budgets in Western markets continue to weigh on this sector. The Nifty IT index falls by more than 1.5%.
Fast-Moving Consumer Goods (FMCG)
The FMCG sector performs well. Hindustan Unilever (HUL) jumps nearly 5% after announcing that Priya Nair will be the new Managing Director and CEO. This move is welcomed by the market. Investors feel confident that the company is in good hands.
Other consumer-focused stocks also gain. This sector benefits from steady domestic demand and rising rural incomes.
Pharmaceuticals
Glenmark Pharmaceuticals sees a sharp rise in its stock price, jumping by nearly 10%. The company signs a large licensing deal worth up to $700 million with global drug giant AbbVie. This news boosts investor confidence in the company’s growth plans.
Metals and Realty
Stocks in metals and real estate trade mostly positively. Companies in steel and construction benefit from strong local demand and infrastructure growth. These sectors continue to show strength even during market corrections.
Banking
Public and private sector banks trade with limited movement. Most banking stocks hold steady or see minor gains. Strong balance sheets and improving loan growth keep investor interest intact in this sector.
Auto and Energy
Auto and energy stocks trade mixed. While some companies show mild gains, others remain flat or fall slightly. No major news drives sharp movement in these sectors today.
Major Stock Movements
TCS shares fall by more than 2% after mixed Q1 results. Despite a rise in profit, poor revenue growth disappoints the market.
Infosys, HCL Tech, Wipro, and Tech Mahindra also trade lower, dragged by concerns about IT spending cuts.
Tata Elxsi reports a 22% drop in profit. The stock falls by about 4% during intraday trade.
IREDA reports a 36% fall in quarterly profit. Rising costs and pressure on margins cause the stock to drop by more than 6%.
Glenmark Pharma hits the 10% upper circuit after the major drug deal announcement.
Anand Rathi Wealth gains over 5% after posting strong quarterly results.
Global Market Influence
Crude Oil and Gold
Crude oil prices rise slightly after a recent dip. Global supply concerns push prices up. Gold also sees gains. Investors move to safer assets like gold because of the uncertain global trade environment.
Indian Rupee
The Indian rupee weakens against the U.S. dollar. It falls by about 15 to 20 paise and trades near ₹85.85 per dollar. Rising imports and global tensions contribute to this decline.
Global Equity Markets
Global stock markets show mixed signals. U.S. futures are down by nearly 0.5%. Asian markets are also under pressure. This global weakness affects Indian investor sentiment.
Technical Market View
Analysts say that the Nifty 50 is now close to its support level at 25,200. If it falls below this, further correction is possible. On the higher side, resistance is near 25,500.
Unless there is strong buying supported by positive news, Nifty may trade in a tight range for the short term. The Bank Nifty, which tracks banking stocks, stays above its 20-day moving average, showing relative strength.
Upcoming Q1 Results
The market is closely watching upcoming quarterly earnings:
HCL Tech will announce its results on July 14.
Tech Mahindra will report on July 16.
L&T Infotech will share numbers on July 17.
Infosys will declare results on July 23.
These updates will help the market understand whether the IT sector is facing temporary or long-term challenges.
Other Market Factors
IPO Activity
Initial public offerings (IPOs) continue to attract attention. Indian companies have raised more than $6.7 billion through IPOs so far in 2025. This shows strong investor demand and healthy market participation.
RBI Liquidity Moves
The Reserve Bank of India is expected to conduct liquidity operations using tools like variable rate reverse repo (VRRR) auctions. These help control excess money in the system and maintain financial stability.
Final Thoughts
The Indian stock market trades lower today due to weak performance from the IT sector and worries about global trade. Major indices, Sensex and Nifty 50, fall for the second day in a row.
While sectors like IT suffer, others such as FMCG, pharma, metals, and realty show strength. Stock-specific news and quarterly earnings continue to influence investor decisions.
Support for Nifty is seen near 25,200, with resistance around 25,500. The market may remain range-bound in the short term until major Q1 earnings and global trade updates offer clear direction.
Investors stay cautious but are looking for opportunities in select sectors showing solid performance and future growth.
