Weak Q1 from TCS drags IT stocks; global tariff worries, rising crude, and India-US trade uncertainty spook markets

Contents

TCS Q1 Results Disappoint: IT Index Tanks Global Tariff Tensions, Crude Spike Add to Pressure India-US Trade Talks in Limbo; VIX Signals Volatility Ahead Watch IT, Crude Sensitives, Infosys Q1 Next Stocks to Watch:

July 11, Mumbai – Indian equity markets witnessed sharp losses in early trade Friday after disappointing Q1 earnings from Tata Consultancy Services (TCS) sparked a broad-based selloff in Nifty IT stocks. The Sensex crashed over 700 points, while the Nifty 50 slipped below its crucial 20-DMA, pressured further by weak global cues, rising crude oil prices, and stalled India-US trade negotiations.

By 11:00 a.m., the BSE Sensex dropped 664.73 points (0.80%) to 82,525.55, while the Nifty 50 fell 195 points (0.77%) to 25,160.25, breaking below its 20-day moving average of 25,245. Weakness was led by IT majors including TCS (-2.5%), Wipro (-1.7%), and Tech Mahindra (-1.6%), with Apollo Hospitals, M&M, and BEL also among top losers.

Also Read: TCS Q1 Beats Estimates with Rs.12,760 Cr Profit; Declares Rs.11 Dividend

TCS Q1 Results Disappoint: IT Index Tanks

TCS Q1FY26 results missed topline expectations. While net profit rose 6% YoY to ₹12,760 crore, it was largely due to higher other income. Rupee revenue increased just 1.3%, and constant currency revenue fell 3.2%, impacted by the BSNL deal wind-down and soft client spending.

The Nifty IT index fell 1.5%, with all 10 constituents in the red.

“TCS results highlight that large-cap IT is still under pressure from weak global tech demand. Midcap IT may show resilience but sector headwinds persist,”
said VK Vijayakumar, Chief Investment Strategist, Geojit Financial.

Result Highlights:

Profit: ₹12,760 Cr (+6% YoY)
Revenue: ₹63,437 Cr (+1.3% YoY)
Constant Currency Revenue: -3.2% YoY
BSNL exit, macro drag hit verticals

Global Tariff Tensions, Crude Spike Add to Pressure

Global sentiment weakened after US President Donald Trump announced 35% tariffs on Canadian imports starting August 1, with similar duties proposed on other nations. This triggered a mild selloff in US futures and hit Asian markets.

Meanwhile, Brent crude rose to $68.88/barrel, adding macro headwinds for India.

“Rising oil and tariff volatility are two risks that can erode India’s relative resilience if sustained,” said a senior macro strategist at a domestic brokerage.

India-US Trade Talks in Limbo; VIX Signals Volatility Ahead

Investors also remain cautious ahead of the July 31 deadline for the India-US bilateral trade deal, with delays unsettling markets. The India VIX rose 2% to 11.87, reflecting rising nervousness during earnings season and ahead of key global data next week.

Watch IT, Crude Sensitives, Infosys Q1 Next

Traders should remain cautious as volatility persists. The focus now shifts to Infosys Q1 earnings, crude oil price trajectory, and updates on the India-US trade pact. Key support for Nifty lies at 25,000, with resistance near 25,400.