Sensex Declines 0.8%, Nifty Slips Below 25,200 Amid Tariff Concerns and TCS Earnings Impact
July 11, 2025 | By Rakesh Patil
Benchmark Indian equity indices continued to slide for the third consecutive session on July 11, weighed down by concerns over the impact of fresh tariffs announced by the United States and subdued earnings from Tata Consultancy Services (TCS). The Nifty 50 index dropped below the critical 25,200 level, reflecting ongoing market caution.
Market Performance at Close
At the closing bell, the S&P BSE Sensex fell by 689.81 points, or 0.83%, settling at 82,500.47. The Nifty 50 index declined by 205.40 points, or 0.81%, closing at 25,149.85. Among broader market indices, the BSE Midcap index extended its downward run to three days with a 0.5% loss, while the BSE Smallcap index reversed a two-day gain, shedding 0.7%.
Overall, the Sensex and Nifty indices declined by over 1% for the week, marking the second straight weekly loss amid persistent uncertainties.
Sectoral Movements
Sector-wise, defensive sectors bucked the downtrend; FMCG rose 0.5% and pharmaceutical stocks gained 0.7%. However, most other prominent sectors ended weaker by roughly 1% each. This included auto, IT, media, oil & gas, consumer durables, capital goods, real estate, and telecom, all reflecting investor caution.
Key Stocks in Focus
Among individual shares, TCS was a notable laggard, falling 3% following its Q1 FY26 earnings report, which disappointed some investors. Tata Elxsi also declined 1.5% on weak quarterly numbers. IREDA shares tumbled 5.6% after profits slumped 36%. Zee Entertainment dropped 3.6% as shareholders rejected the promoters’ proposal to increase their stake.
Conversely, Anand Rathi shares surged 4% after a strong 28% jump in Q1 profits. Glenmark Pharma soared 14% to a record high following a major licensing deal for its cancer drug. Banking stocks including SBI Life Insurance, Kotak Mahindra Bank, Axis Bank, and IndusInd Bank registered gains, supporting market breadth.
Impact of US Tariff Announcements
Investor sentiment was dragged lower after US President Donald Trump announced plans to impose a 35% tariff on imports from Canada and broader tariffs ranging from 15% to 20% on other trading partners. These measures raised concerns about potential disruptions to global trade and pressure on Indian exporters.
Expert Views and Outlook
Ajit Mishra, Senior Vice President of Research at Religare Broking, noted that the market struggled amid weak cues, with the disappointing TCS results triggering profit-taking across several heavyweight stocks and sectors such as IT, auto, and realty. He emphasized that only defensives like FMCG and pharma managed to post gains. Mishra indicated that the Nifty slipping below its 20-day exponential moving average (20-DEMA) could signal a consolidation phase ahead, with earnings season expected to keep volatility elevated. He advised traders to adopt a cautious approach with a focus on risk management and selective stock picking.
Rupak De, Senior Technical Analyst at LKP Securities, added that the Nifty remains technically weak, having dropped below key support levels on the hourly chart and the 21-day EMA on the daily chart. Momentum indicators such as RSI are negative. However, he pointed out support near the 200-hourly moving average. According to De, a rebound above 25,150-25,160 in early trading could spark a rally towards 25,250 and 25,400, while downside support levels are at 25,090 and 24,900. Broader Market Highlights
More than 120 stocks on the BSE touched new 52-week highs, including Glenmark Pharma, Asahi India, EID Parry, Ramco Cements, JK Cement, JK Lakshmi Cement, Krishna Institute of Medical Sciences, and Nippon Life India Asset Management, indicating pockets of strength.
Conclusion
In sum, Indian equity markets faced headwinds from trade-related tariff concerns and mixed corporate earnings, notably from IT major TCS, leading to a notable decline in indices and widespread sectoral weakness. Investors are advised to navigate the current volatile environment with caution, paying close attention to earnings results and global trade developments as the week progresses.
Disclaimer: The views expressed are those of the mentioned experts and do not reflect the official position of Smart Money Mindset. Investors are encouraged to consult certified financial advisors before making investment decisions.