CHENNAI: Indian equity indices closed sharply lower on Friday (July 11), marked by a sharp sell-off in the IT sector, renewed trade fears, and cautious investor sentiment.
The BSE Sensex fell 689.81 points (–0.83%), closing at 82,500.47, while Nifty 50 declined 205.40 points (–0.81%), ending at 25,149.85.
The key drivers behind the decline included IT sector sell-off, US trade tensions, and other global cues and foreign outflows.
Tata Consultancy Services (TCS) reported weaker-than-expected Q1 results, with revenue disappointments weighing heavily
The Nifty IT index dropped approximately 1.8%, with Wipro and Infosys also under pressure.
TCS dropped about 2–3.5% following its miss in Q1 results. Tata Steel eased 0.5%, lagging peers amid seasonal weakness.
In FMCG, Hindustan Unilever rose about 4.4% on the announcement of Priya Nair as its new CEO—the steepest gain in over a year.
Glenmark Pharma surged about 10% after striking a licensing deal with AbbVie.
Trade War
The US President Trump announced a 35% tariff on Canadian imports, with threats extending to broad-based tariffs, spooking markets globally.
This exacerbated fears of a full-blown trade war, dampening investor confidence.
Weak international markets, potential Russia sanctions, and volatility in global trade chains added to pressure.
Foreign institutional investors are showing signs of selling amid valuation worries and rising US interest rates
Sectoral trends
Mid- and small-cap indices retreated between 0.75% and 1%
Heavyweights like Auto and Energy also weighed on benchmarks, while defensive themes such as FMCG and Pharma provided modest support
Caution ahead of RBI policy
Investors adopted a cautious stance ahead of the RBI’s upcoming monetary decision, pricing in potential policy shifts.
The rupee weakened about 0.3% to ₹85.8650/USD, hit by capital outflows and a stronger dollar.
This depreciation pressured forward premiums and marginally impacted bond yields.
Outlook & Strategy
Markets remain under pressure in the short run, driven by dovish Q1 earnings, rising tariff-induced global risks, and seasonal macro uncertainty ahead of major policy decisions. Analysts suggest stock-specific opportunities may emerge amid earnings reminders—but elevated valuation levels and global volatility may limit fresh funding flows.
The rupee also came under pressure, reflecting capital outflows. While select defensive and consumer stocks bucked the trend, the broader market awaits clearer earnings and policy signals for decisive direction.