After opening mildly in the red, Dalal Street fell prey to significant selling pressure through the Friday, July 11 session, as investors rushed to book profits amid concerns of a lacklustre earnings season, following IT giant Tata Consultancy Services' weak quarterly show and disappointing commentary.
At close, the Sensex was down 689.81 points or 0.83 percent at 82,500.47, and the Nifty was down 205.40 points or 0.81 percent at 25,149.85. About 1510 shares advanced, 2341 shares declined, and 150 shares remained unchanged.
The broader markets were also in the red, with the Nifty Midcap 100 index tumbling 0.8 percent, while the Nifty Smallcap 100 index sank around one percent.
On the day, most sectoral indices were deep in the red. Nifty IT was the worst performer, falling 1.8 percent, followed closely by Nifty Media, which declined 1.5 percent. Nifty Auto fell 1.4 percent, while Nifty Realty and Nifty Infra slipped around one percent, respectively.
On the positive side, Nifty Pharma rose 0.9 percent and Nifty FMCG gained 0.7 percent, bucking the broader weak trend.
The Nifty IT index was dragged by poor earnings and commentary from TCS, following its earnings show for the quarter ended June. The IT major posted a 6 percent rise in net profit to Rs 12,760 crore, aided by higher non-core income, while revenue growth remained muted. The company’s rupee revenue rose 1.3 percent to Rs 63,437 crore, but declined over 3 percent in constant currency terms due to market headwinds and the winding down of the BSNL deal.
Gains in Glenmark Pharma, with the stock rallying 20 percent intraday, led the Nifty Pharma index. Shares of the pharma player rallied after the company announced that its subsidiary has signed an exclusive global licensing agreement for its investigational asset ISB 2001 with New York-based AbbVie. ISB 2001 is currently in the first phase of clinical trials for patients suffering from relapsed or refractory multiple myeloma, a type of cancer, the company said in an exchange filing.
Further, the FMCG index also rallied, led by heavy-weight blue-chip Hindustan Unilever Ltd. HUL announced that Priya Nair would be stepping into the CEO's role, replacing Rohit Jawa from August 1, 2025. The markets were highly optimistic about the development, betting that her tenure would focus on growth-led initiatives, breaking the FMCG player out of its underperformance period.
On a technical basis, the Nifty 50 index broke past its key support of 25,300. Experts had suggested that a breakdown below this zone may push it towards 25,100–25,000. "On the upside, resistance is placed at 25,500, with a major hurdle near 25,600. The index remains under pressure unless it reclaims these levels," said Mandar Bhojane, Senior Technical & Derivative Analyst, Choice Broking.
He added that given the current environment marked by uncertainty and elevated volatility, traders are advised to adopt a cautious “wait and watch” approach, particularly with leveraged positions. Booking partial profits on rallies and employing tight trailing stop-losses is recommended.
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