More Stories

Informist, Friday, Jul. 11, 2025

By Gopika Balasubramanium

MUMBAI – Benchmark equity indices are likely to come under selling pressure next week, as the earnings season has started on a sombre note with Tata Consultancy Services reporting disappointing numbers, analysts said. HCL Technologies is due to declare its quarterly earnings on Monday, so are Ola Electric Mobility and Tata Technologies. However, benchmark indices could rise if there is any positive development in trade talks with the US, they said.

"Weakness is likely to continue in the coming week," Jatin Gedia, technical analyst at Mirae Asset Sharekhan. "The reaction today (Thursday) was on the back of weak quarterly earnings from TCS (Tata Consultancy Services) and overhang of trade deal with the US," he said. The Nifty 50 may start rising if there is any positive update from the bilateral trade talks between India and the US, Gedia said. 

On Friday, the Nifty 50 closed at 25149.85 points, down 205.40 points or 0.8%. Technical analysts expect the 50-stock index to find support at 25000-24800 points and resistance at 25500-25800 points in the near term. If the Nifty 50 breaches 25000 points, it may fall up to 24600 points, Kshitija Salvi, technical analyst at IDBI Capital & Markets, said. Among the sectors, Salvi expects the information technology stocks to remain under selling pressure, followed by banking and automobile stocks. 

Some broking firms had in their strategy reports for July said that the Nifty 50 may cross the record high of 26277.35 points during the month. However, most analysts do not expect this to happen now. "A lot depends upon the earnings now," Ajit Mishra, senior vice president – research, Religare Broking, said when asked about the Nifty 50 touching a record high in July.

Information technology companies are among the first to declare quarterly results and normally set the tone for the earnings season. This time, it was a rather gloomy tone as benchmark indices underwent continuous selling pressure on the first day of trading after June quarter earnings began with Tata Consultancy Services. TCS disappointed the Street as its revenue in constant currency terms declined more than expected. Several brokerages flagged that the macroeconomic outlook for the Indian IT companies looks challenging post-TCS results, as concerns on delays in spending by clients continue. Most broking firms trimmed their target prices for TCS by 2-5%. Both Gedia of Sharekhan and Salvi of IDBI Capital expect the information technology stocks to be weak in the near term and see further downside for TCS.   

Large-cap IT major HCL Technologies will report its June quarter earnings on Monday. It is likely to report sequentially flat growth in revenues and a decline in net profit, along with a contraction in its margin, analysts said. The company is expected to report a consolidated net profit of INR 42.35 billion, down 1.7% sequentially, according to an average of estimates by 14 brokerage firms. The company's revenue from operations is expected to rise 0.3% on quarter to INR 303.28 billion.

Shares of HCL Technologies have declined for the past five sessions, falling 5.1% during the period. Technical analysts expect the stock to find support at INR 1,590-INR 1,575 and face resistance at INR 1,710-INR 1,725. 

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.