Markets Open Lower on July 11 as IT Stocks Weigh Down Sentiment Post-TCS Earnings
Benchmark Indian equity indices Sensex and Nifty opened lower on Friday, July 11, 2025, dragged down by IT sector weakness following the Q1 FY26 earnings report of Tata Consultancy Services (TCS).
- BSE Sensex dropped 398.45 points to 82,791.83
- NSE Nifty declined 111.25 points to 25,244
TCS Drags Down IT Pack After Muted Revenue Growth
Tata Consultancy Services (TCS), India’s largest IT services company, reported:
- 6% YoY net profit growth to ₹12,760 crore
- Revenue at ₹63,437 crore, up just 1.3%, but down over 3% in constant currency terms
- Stock slipped ~2% after the results
The company’s performance was impacted by geopolitical tensions, soft demand in key markets, and the conclusion of the BSNL deal, which had previously supported earnings.
Expert Take:
“Q1 results of TCS indicate continuing struggle for large-cap IT. However, midcap IT may do well going forward,” said VK Vijayakumar, Chief Investment Strategist, Geojit.
Top Losers and Gainers
Losers (Sensex):
- TCS
- Infosys
- Tech Mahindra
- HCL Tech
- Mahindra & Mahindra
- Bajaj Finserv
Gainers:
- Hindustan Unilever
- Axis Bank
- NTPC
- Asian Paints
Market Commentary: Broader Outlook Cautious
Prashanth Tapse, Senior VP (Research) at Mehta Equities, said:
“TCS beat estimates with a 6% profit rise, but demand contraction due to global uncertainties and hawkish Fed tones could keep Nifty bulls under pressure. Trump’s trade tariff rhetoric also weighs on sentiment.”
Global Markets Snapshot
- Asia:
- Kospi (South Korea) – Positive
- Nikkei 225 (Japan) – Positive
- SSE Composite (Shanghai) – Positive
- Hang Seng (Hong Kong) – Positive
- US Markets:
- Ended positive on Thursday (July 10, 2025)
- Oil Prices:
- Brent Crude up 0.35% to $68.88 per barrel
- Foreign Institutional Investment:
- FIIs bought ₹221.06 crore worth of Indian equities on July 10
Recap: Previous Session (July 10, 2025)
- Sensex: Closed down 345.80 points at 83,190.28
- Nifty: Fell 120.85 points to 25,355.25
Key Takeaways
- Large-cap IT continues to face challenges despite earnings beats.
- Midcap IT may emerge stronger amid sector divergence.
- Broader markets are cautious due to Fed policy tone and global tensions.
- Investors are advised to track IT earnings closely, along with global economic cues.
