Sensex down 450 pts, Nifty below 25,250 as IT stocks fall on TCS Q1 results; FMCG, pharma shares gain

Laggards on the index included TCS, M&M, Wipro, Bharat Electronics, and Apollo Hospitals.

Benchmark indices Nifty and Sensex fell for a third straight session on July 11, tracking a global risk-off mood after fresh tariff threats from US President Donald Trump reignited fears of a trade war. Trump announced a 35 percent levy on Canadian imports starting August 1 and signalled sweeping duties of 15–20 percent on most trade partners, shaking investor sentiment.

Adding to the pressure, TCS shares slipped after posting a subdued Q1 performance, while the broader market was largely flat.

At about 10:30 am, the Sensex was down 458.98 points or 0.55 percent at 82,731.30, and the Nifty was down 127.40 points or 0.50 percent at 25,227.85. About 1306 shares advanced, 1889 shares declined, and 141 shares unchanged.

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"There is uncertainty surrounding President Trump's trade policies, as he continues to threaten elevated tariffs across various sectors and countries. Most recently, his decision to slap 35 percent tariffs on Canada has also hampered sentiment," Devarsh Vakil, Head of Prime Research at HDFC Securities, said.

The nearly 2 percent drop in TCS has deepened concerns around the broader Q1 earnings season, with experts flagging limited clarity on growth prospects for FY26 for the IT major. Brokerages noted that the company’s constant currency growth missed street expectations, and cautioned that a meaningful margin improvement over the rest of the year appears unlikely.

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Sectoral indices on the NSE traded mostly in the red on July 11, with sharp losses seen across key segments. Nifty IT was the top laggard, falling 1.35 percent. Auto, Energy, Consumer Durables, and Oil & Gas also declined over 1 percent each, while Infra, Midcap, and Smallcap indices dropped between 0.67 and 0.87 percent. Banking stocks remained under pressure, with Nifty Bank down 0.35 percent, PSU Bank slipping 0.52 percent, and Private Bank easing 0.11 percent. Among the few gainers, FMCG rose 1.03 percent and Pharma added 0.78 percent. India VIX edged down 0.69 percent to 11.59, reflecting continued low volatility despite the broad-based selloff.

Indian Renewable Energy Development Agency (IREDA) slipped 6 percent after its asset quality took a sharp hit in the June quarter, overshadowing strong loan growth and denting investor sentiment. The state-run lender reported a 35.7 percent year-on-year drop in net profit to Rs 247 crore, largely due to a rise in bad loans.

Tata Elxsi slipped 4 percent after the company reported a sharp drop in June quarter earnings, triggering concerns over demand headwinds and margin pressure. The disappointing performance also prompted global brokerages to cut estimates and maintain bearish views on the stock.

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From a technical perspective, the 25,300 level is now a crucial make-or-break point; a sustained close below this could further weaken the chart structure. On the flip side, the 25,550–25,600 zone continues to attract selling pressure, marking a critical resistance area that needs to be crossed for any sustainable up move. Additionally, Foreign Portfolio Investors (FPIs) are aggressively increasing their short positions in index futures, indicating caution from institutional participants. Until there's evidence of short covering or long buildup by FPIs, upside momentum is expected to remain limited.

HUL, Nestle, Asian Paints, Sun Pharma and SBI Life Insurance were the top gainers on the Nifty. Laggards on the index included TCS, M&M, Wipro, Bharat Electronics, and Apollo Hospitals.