Sensex and Nifty News: Markets Slide as TCS Earnings Disappoint and Global Tariff Tensions Mount

Market Performance: Sensex and Nifty Plunge Amid Broad-Based Selloff

The Indian stock market faced a steep decline on Friday, July 11, driven by disappointing corporate earnings and rising global uncertainties.

• Sensex dropped by 690 points or 0.83%, closing at 82,500.47.
• Nifty 50 ended at 25,149.85, falling 205 points or 0.81%.
• Intraday lows:
  • Sensex: 82,442.25
  • Nifty 50: 25,129

The broader market sentiment was equally bearish:

• BSE Midcap Index fell 0.65%
• BSE Smallcap Index declined 0.70%

On the sectoral front:

• Nifty IT and Nifty Auto were the worst performers, both dropping nearly 2%
• Pharma and FMCG were the only gainers, rising over 0.5%

Main News: Factors Behind the Market Crash

1. TCS Earnings Trigger Caution

India's largest IT services firm, Tata Consultancy Services (TCS), delivered a muted Q1 performance, which dented market confidence.

• Revenue: $7.42 billion
  • Down 0.59% QoQ
  • Down 1.12% YoY
• This marked TCS's weakest Q1 since June 2020

Investors reacted negatively as TCS missed analyst expectations and cited persistent headwinds, including the winding down of the BSNL deal.

2. Global Tariff Tensions Escalate

Trade tensions flared after US President Donald Trump announced:

• 35% tariff on Canadian goods from August 1
• Possible tariff hikes of 15–20% on non-listed nations

These developments heightened fears of global inflation and economic slowdown, leading investors to reduce equity exposure.

3. Market Valuation Concerns

The broader market has been trading at stretched valuations:

• Nifty's PE Ratio: Nearly 22 times FY26E EPS
• Despite tepid earnings, market valuations remain high
• This triggered profit-booking and portfolio rebalancing by institutional investors

4. Flight to Safety: Gold & Silver Soar

As equities turned volatile, investors flocked to safe-haven assets:

• MCX Gold (August 5): ₹97,548 per 10g
• MCX Silver (September 5): ₹1,11,552 per kg

The rush toward precious metals highlighted the fragile risk appetite across markets.

Company Highlights: Sectoral Breakdown

Nifty Auto

• Fell 1.4% due to valuation concerns and earnings-related nervousness
• Automakers faced additional headwinds from tariff threats.

Nifty IT

• Declined 1.8%, worst-performing sector
• TCS's disappointment led to the fall

Nifty Media

• Dropped 1.5%, mirroring global caution and reduced ad spend forecasts

Realty & Infra

• Both sectors slipped around 1%, tracking the broader market weakness.

Nifty Pharma

• Gained 0.9%; outperformed amid stock-specific action
• Glenmark Pharma surged 20% intraday after announcing a licensing deal for its investigational drug ISB 2001 with AbbVie.

Nifty FMCG

• Rose 0.7%, driven by optimism around Hindustan Unilever (HUL)
• HUL named Priya Nair as the next CEO, effective August 1, 2025, boosting sentiment

Company Details: Glenmark Pharma & HUL in Focus

Glenmark Pharma

• Signed a global licensing deal for ISB 2001 with AbbVie
• ISB 2001 is undergoing Phase 1 trials for relapsed or refractory multiple myeloma

Hindustan Unilever (HUL)

• Appointed Priya Nair as CEO from August 1, 2025
• Markets welcomed this leadership transition amid hopes of a strategic refresh.

Summary of the Article

• The Sensex and Nifty tumbled by 690 and 205 points, respectively, amid a wave of profit-booking and weak corporate earnings.
• TCS's underwhelming Q1 results and Trump's tariff escalation were key triggers for the selloff
• Sectoral indices reflected a broad-based decline, with IT, Auto, and Media dragging down performance.
• Glenmark Pharma and HUL provided some relief to investors, outperforming the weak trend.
• Market valuation concerns and a shift toward safe-haven assets like gold and silver signal cautious investor sentiment.