Dalal Street Ends Week on a Sour Note as Trade Tensions and Weak Q1 Earnings Weigh on Sentiment
The Indian stock market closed sharply lower on Friday, July 11, as rising global trade tensions and a disappointing start to the Q1 earnings season dampened investor sentiment. Both benchmark indices ended the session in the red, breaking recent bullish momentum.
The BSE Sensex tumbled 690 points, or 0.83%, to close at 82,500.47, while the NSE Nifty 50 shed 205 points, or 0.81%, to settle at 25,149.85. Market breadth remained weak, with declines seen across most sectors, especially IT, financials, and metals.
Investor nerves were rattled after the earnings report from Tata Consultancy Services (TCS), one of India’s largest IT companies, fell short of expectations, triggering a broad-based selloff in technology stocks. Adding to the pressure were renewed concerns over global trade frictions, particularly between the US and its trading partners, which raised fears of further disruptions in global supply chains and economic uncertainty.
“Markets traded under pressure on Friday and lost over half a percent, dragged down by weak cues. The session began on a negative note following disappointing results from IT major TCS, which further worsened due to profit-taking in heavyweight stocks across other sectors,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
He added, “Sentiment remained subdued due to ongoing uncertainty around tariff-related issues and a weak start to the earnings season. As a result, the Nifty slipped below its first line of defense—the 20-day exponential moving average (20-DEMA)—disrupting the ongoing positive trend.”
With the Nifty breaking below a key technical support level, market analysts expect increased volatility in the near term. The focus will now shift to more earnings announcements in the coming week, as investors look for clarity on corporate performance amid a challenging macro environment.
Experts advise traders to remain cautious, adopt strict risk management strategies, and be selective in stock picking as the market navigates through this uncertain phase.
