Weak Q1 from TCS drags IT stocks; global tariff worries, rising crude, and India-US trade uncertainty spook markets<\/p>\n
July 11, Mumbai \u2013 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.<\/p>\n
By 11:00 a.m., the BSE Sensex<\/a> 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.<\/p>\n Also Read: TCS Q1 Beats Estimates with Rs.12,760 Cr Profit; Declares Rs.11 Dividend<\/a><\/p>\n TCS Q1FY26 results missed topline expectations. While net profit rose 6% YoY to \u20b912,760 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.<\/p>\n The Nifty IT index fell 1.5%, with all 10 constituents in the red.<\/p>\n \u201cTCS results highlight that large-cap IT is still under pressure from weak global tech demand. Midcap IT may show resilience but sector headwinds persist,\u201d Profit: \u20b912,760 Cr (+6% YoY)<\/p>\n<\/li>\n Revenue: \u20b963,437 Cr (+1.3% YoY)<\/p>\n<\/li>\n Constant Currency Revenue: -3.2% YoY<\/p>\n<\/li>\n BSNL exit, macro drag hit verticals<\/p>\n<\/li>\n<\/ul>\n 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.<\/p>\n Meanwhile, Brent crude rose to $68.88\/barrel, adding macro headwinds for India.<\/p>\n \u201cRising oil and tariff volatility are two risks that can erode India\u2019s relative resilience if sustained,\u201d said a senior macro strategist at a domestic brokerage.<\/p>\n<\/blockquote>\n Investors also remain cautious ahead of the July 31 deadline for the India-US bilateral trade deal, with delays unsettling markets. The India VIX<\/a> rose 2% to 11.87, reflecting rising nervousness during earnings season and ahead of key global data next week.<\/p>\n 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.<\/p>\n TCS Stock Price<\/a>,<\/p>\n<\/li>\n TechM Stock Price<\/a><\/p>\n<\/li>\n<\/ul>\nTCS Q1 Results Disappoint: IT Index Tanks<\/h2>\n
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said VK Vijayakumar, Chief Investment Strategist, Geojit Financial.<\/p>\n<\/blockquote>\nResult Highlights:<\/h3>\n
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Global Tariff Tensions, Crude Spike Add to Pressure<\/h2>\n
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India-US Trade Talks in Limbo; VIX Signals Volatility Ahead<\/h2>\n
Watch IT, Crude Sensitives, Infosys Q1 Next<\/h2>\n
Stocks to Watch:<\/h2>\n
IT earnings pressure<\/h3>\n
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Crude spike sensitive<\/h3>\n