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Informist, Friday, Jul. 11, 2025

By Gopika Balasubramanium

MUMBAI – India's headline indices came under selling pressure and closed significantly lower on Friday, dragged down primarily by information technology stocks. These stocks fell as Tata Consultancy Services disappointed the Street with its June quarter results. Some analysts said that lack of clarity with respect to India-US trade deal also weighed on the sentiment, even as US President Donald Trump announced fresh levies on some countries. 

The Nifty 50 closed at 25149.85 points, down 205.40 points or 0.8%. The index closed below 25200 points for the first time since Jun. 24. The 50-stock index had consolidated nearly two weeks in the range of 25300-25500 points after it rose to 25650 points on Jun. 27. The BSE Sensex closed at 82500.47 points, down 689.81 points or 0.8%. Benchmark indices declined for the third straight session.

Broader market indices closed sharply lower, underperforming the benchmark indices. The Nifty Midcap 50 closed 1.2% lower at 16482 points. Other mid-cap and small-cap indices such as Nifty Smallcap 50, Nifty Smallcap 100, and Nifty Midcap 100 also closed 1% each.

Among sectoral indices, the Nifty IT was the worst hit, closing nearly 2% lower. The index has been ending the red for three straigt sessions. Barring Tech Mahindra, all the nine constituents of the index closed sharply lower. Large-cap stocks such as Tata Consultancy Services, Wipro, HCL Technologies, and Infosys closed 1.3-3.4% lower. TCS shares fell nearly 4% to a three-month low of INR 3,266 and came off lows to end 3.4% down. The stock has declined for five consecutive sessions and has declined 6%.    

Friday's fall was mainly due to a sharp year-on-year fall in its revenue of the company in constancy currency terms for the latest quarter. Sales across geographies also declined, weighing on the earnings. The ramp-down in the Bharat Sanchar Nigam deal also weakened the overall sales. 

Some brokerages have only cut their respective target prices of TCS post its June quarter results, while others downgraded their ratings on the stock. Brokerages also expect US' tariff policies to add further worries in sectors such as pharmaceutical companies and added that spending in energy has reduced due to policy changes and geopolitical tensions. Analysts were also cautious on the growth outlook for the sector as macroeconomic conditions posed a challenge for Indian IT companies. Delay in discretionary spending by clients post US' changing policies is also causing a worry, analysts said.     

Automobile stocks also declined sharply. The Nifty Auto closed 1.8% lower at 23493 points. Mahindra & Mahindra, TVS Motor Co., Bajaj Auto, and Hero Motocorp. declined 2.3-2.8% each. However, Bosch and Balkrishna Industries were the only stocks to close in the green among the Nifty Auto constituents. 

Some stocks reacted to their June quarter earnings. Tata Elxsi closed 2% lower after both its net profit and revenue missed expectations. Shares of Indian Renewable Energy Development Agency closed 6% lower and touched one-month low intraday after its net profit for the June quarter fell 36% on year. On other hand, Anand Rathi Wealth closed 4% after the company's consolidated net profit rose 28%. 

Among other stocks, Glenmark Pharmaceuticals closed 15% higher. The stock jumped after the company's arm signed a deal with New York-based AbbVie for the former's investigational asset ISB 2001 for oncology and autoimmune diseases. Nomura Global Markets Research said this is the largest licensing deal signed by any Indian pharmaceutical company so far. Motilal Oswal raised Glenmark's target price by 44% to INR 2,430 post the deal.

* Of the Nifty 50 stocks, 12 rose and 38 fell

* Of the Sensex stocks, 10 rose and 20 fell

* On the NSE, 1,030 stocks rose, 1,891 fell, and 91 were unchanged

* On the BSE, 1,551 stocks rose, 2,453 fell, and 161 were unchanged

* Nifty IT: down 1.8%; Nifty Auto: up 1.8%; Nifty Pharma: up 0.7%

BSE                                               NSE

Sensex: 82500.47, down 689.81 points or 0.8%      Nifty 50: 25149.85, down 205.40 points or 0.8%

End

Edited by Akul Nishant Akhoury

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