BSE Sensex closed at 82,508.89, down 681.39 points (0.82%), while the Nifty 50 settled at 25,155.70, down 199.55 points (0.79%) on July 11, 2025.
The stock market decline is largely attributed to the weak start of the Q1 earnings season with TCS's disappointing results
Renewed tariff threats from US President Donald Trump loom, raising investor concerns over the market's elevated valuations.
Indian stock market benchmarks, Sensex and Nifty 50, suffered significant losses in trading session on July 11, 2025. Sensex plummeted over 700 points, and the Nifty 50 breaking below the 25,150 mark at press time. The selloff was widespread, impacting midcap and smallcap indices as well, leading to a substantial erosion of investor wealth.
The Sensex opened at 82,820.76 against its previous close of 83,190.28, touching an intraday low of 82,451.50, nearly 1 % down. Similarly, the Nifty 50 commenced trading at 25,255.50 against its prior close of 25,355.25, declining by almost 1 % to an intraday low of 25,136.75. The overall market capitalization of BSE-listed firms dropped by approximately Rs. 3 lakh crore. Thus, the figure fell from Rs. 460 lakh crore to nearly Rs. 457 lakh crore.
Leading the losers among Nifty 50 components were IT majors and auto stocks, including TCS (-3.28%), Apollo Hospitals (-2.41%), M&M (-2.33%), Wipro (-2.28%), and Bharti Airtel (-2.25%). The telecom sector also saw pressure.
Despite the broad selloff, a few stocks showed resilience. HUL (4.57%), SBI Life Insurance (1.09%), Axis Bank (0.56%), Nestle (0.55%), and Eternal (0.49%) were among the top Nifty gainers.
The selloff was not confined to large caps, as the BSE Midcap and Smallcap indices also declined by almost 1 % each during the session. BSE-listed firms collectively lost around Rs. 3 lakh crore in market capitalization.
Global brokerage firm UBS downgraded Bharti Airtel's rating from 'neutral' to 'sell'. Although it raised the target price to Rs. 1,970 from Rs. 1,705. UBS cited concerns that the market may have already discounted the expected 10-12% tariff hike in FY26, and there's a risk of it being delayed or of a lower magnitude.
The brokerage firm expects Q1 FY26 to be a ‘boring’ quarter for telecom players due to the absence of significant price interventions. Thus, projecting modest mobile revenue growth for Airtel and Vodafone Idea.
Bharti Airtel share price dropped over 2% in intraday trade on July 11, extending losses to a third consecutive session. This comes despite the telecom stock's impressive year-to-date (YTD) gain of over 20% compared to the Sensex's 5% rise.
In contrast to the broader market's downturn, Glenmark Pharmaceuticals stood out as a significant gainer. The stock surged to a 10% upper circuit on Friday, July 11, reaching an intraday high of Rs. 2,094.40. This rally followed the announcement of a major global licensing and commercialization partnership. The collaboration is for the company’s oncology asset ISB 2001 with US-based pharma giant AbbVie.
The deal includes an upfront payment of $700 million and potential milestone payments of up to $1.225 billion, along with tiered, double-digit royalties on net sales. This is one of the largest biotech deals by an Indian company in recent years. Glenmark's R&D capabilities, particularly in oncology and immunology, are boosting investment sentiments amidst market volatility.
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The majority of the sectors traded lower, with Nifty IT index leading the decline (around 2.1%), primarily due to the poor performance of TCS and other IT heavyweights. Automotive and Oil & Gas sectors also decreased by over 1%. Meanwhile, Financial and PSU Bank indices recorded losses exceeding 0.5%. Only a few sectors, like Pharma and FMCG, managed to show resilience.
A combination of factors contributed to the sharp decline in the domestic market:
Tata Consultancy Services (TCS) reported its Q1 FY26 numbers on July 10, which largely failed to meet market expectations, marking the IT giant's third consecutive quarter of lower revenue. TCS recorded revenue of $7.42 billion in the June quarter, a 0.59 % sequential decline and 1.12 % year-on-year drop, falling short of Bloomberg analysts' estimates of $7.54 billion.
This was TCS’s worst Q1 performance since June 2020. The disappointing start to the earnings season has further soured market sentiment, which was already fragile due to tariff-related uncertainties and elevated valuations.
US President Donald Trump escalated the global trade war on July 10. He announced a 35 % tariff rate for goods imported from Canada, effective August 1. He also hinted at baseline tariff rates of 15 % or 20 % for countries not receiving specific tariff letters, higher than the current 10 %. These fresh tariff threats have dampened hopes for an early resolution to the trade conflicts. They have sparked fears of higher inflation and a potential global economic slowdown.
The Indian stock market's premium valuations with earnings being subdued, have made investors increasingly cautious.
Shibani Kurian, Senior Fund Manager and Head of Equity Research at Kotak Mahindra AMC, noted that, “Nifty 50 currently trades at a PE (price-to-earnings) of nearly 22 times FY26E EPS (earnings per share), with consensus estimating low double-digit earnings growth for FY26E, suggesting moderate returns in the near term.”
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted that the overvaluation of the broader market is undergoing a correction. Hence, leading to India's underperformance compared to other emerging and developed markets.
The escalating tariff-related uncertainties have diminished investors' risk appetite. It has prompted a shift from equities to traditional safe-haven assets. MCX Gold August 5 contract surged by nearly 1 % to an intraday high of Rs.97,548 per 10 grams. Similarly, MCX Silver September 5 contract touched a record high of Rs.1,11,552 per kg in today's session. Therefore, reflecting the flight to safety.
From a technical perspective, the Nifty 50's structure indicates further weakness.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, pointed out that, “Nifty 50 formed a bearish candle on the daily chart and a lower top on the intraday chart, both negative signals.” He believes the short-term market scenario is weak, with potential for further selling if the index breaks below 25,330. It may possibly lead to levels of 25,200-25,150, and potentially 25,050.
Hardik Matalia of Choice Equity Broking Private Limited echoed the above-mentioned sentiment. He suggested a decisive break below 25,330–25,300 could extend selling pressure towards 25,100–25,000.
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Stock market today is highly sensitive to both global developments and domestic earnings performance. Q1 FY26 earnings season are just commencing, increasing volatility. The ongoing trade tensions, particularly the US tariff policies, will continue to dictate global market sentiment in the short-term. It may also influence capital flows and risk appetite in emerging markets like India.
Market participants should closely watch upcoming Q1 updates and management commentary for further cues.
1. Why is stock market is down today?
The Indian stock market fell sharply due to a combination of factors. It includes a weak start to the Q1 earnings season with disappointing results from TCS, intensified trade war threats from US President Donald Trump. There are also concerns over stretched market valuations, and a rush by investors towards safe-haven assets like gold.
2. How did TCS's Q1 update impact the market?
TCS reported lower-than-expected revenue for Q1 FY26. Hence, marking its third consecutive quarter of decline. This weak start to the earnings season deteriorated market sentiment, particularly for the IT sector. It also made investors cautious about overall corporate performance.
3. What is the latest Trump stock news for today?
US President Donald Trump announced a 35% tariff on Canadian imports and signaled potential higher tariffs for other trading partners. These threats dashed hopes for trade war resolution.Thus, raising concerns about global economic slowdown and inflation, prompting a selloff in riskier assets.
4. Should you buy gold and silver today?
Increasing tariff-related uncertainties and a general weakening of risk appetites are causing investors to move away from volatile equities. They are shifting towards traditional safe-haven assets like gold and silver. These assets are appealing as they tend to hold or increase their value during times of market turmoil.
5 What is the current outlook for the Indian stock market?
The Indian stock market is expected to remain sensitive to upcoming corporate earnings reports for Q1 FY26 and further developments regarding global trade policies. While some correction due to overvaluation is underway, positive earnings surprises or clarity on trade could provide future direction.