Indices drop for third day amid Trump tariff fears, selloff in IT stocks

The key benchmark indices closed deep in the red on Friday, marking their third consecutive day of losses as investors grappled with global trade tensions and disappointing cues from the IT sector. The Nifty 50 settled just under the 25,150 mark, weighed down by declines in IT and auto stocks. However, sectors like pharma and FMCG managed to attract some buying interest.

The slide in technology shares was primarily triggered by investor reaction to Tata Consultancy Services' (TCS) Q1 earnings, which failed to meet heightened expectations. Sentiment was further dented by geopolitical jitters after US President Donald Trump announced sweeping new tariffs on Canadian imports and hinted at similar action against other trade partners.

The S&P BSE Sensex tumbled 689.81 points or 0.83% to 82,500.47. The Nifty 50 index dropped 205.40 points or 0.81% to 25,149.85. In three consecutive trading sessions, the Sensex declined 1.45%, while the Nifty fell 1.46%.

TCS (down 3.46%), Reliance Industries (down 1.47%) and HDFC Bank (down 1.14%) were major drags.

The broader market outperformed. The S&P BSE Mid-Cap index shed 0.65% and the S&P BSE Small-Cap index rose 0.70%.

The market breadth was negative. On the BSE, 1,551 shares rose and 2,453 shares fell. A total of 161 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.24% to 11.82.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.16% to 6.308 from the previous close of 6.318.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.77 compared with its close of 85.70 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement gained 0.81% to Rs 97,479.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 97.44.

The United States 10-year bond yield rose 0.67% to 4.388.

In the commodities market, Brent crude for September 2025 settlement added 31 cents or 0.45% to $68.95 a barrel.

Global Markets:

The US Dow Jones index futures were currently down by 312 points, signaling a negative opening for US stocks today.

European shares traded lower on Friday after data revealed that the U.K. economy unexpectedly contracted again in May, unable to recover from the impact of U.S. tariffs and ongoing business uncertainty.

According to data from the Office for National Statistics, U.K. gross domestic product (GDP) fell by 0.1% in May on a monthly basis, following a 0.3% contraction in April, the largest decline since October 2023.

Most Asian stocks ended higher. U.S. President Donald Trump announced 35% tariffs on Canada starting Aug 1. The new duties will be in addition to Trump's recent sectoral tariffs. Trump attributed fentanyl and Canada's retaliatory tariffs as reasons for the rate. The 35% duty might be increased if Canada continues to retaliate, Trump said.

Trump also told reporters Thursday that his administration is preparing to impose blanket tariffs of 15% to 20% on a broader set of trade partners, adding another layer of uncertainty to global trade dynamics.

Despite the rising geopolitical tension, Wall Street closed higher overnight, with the S&P 500 and Nasdaq setting fresh record highs. The S&P 500 gained 0.27%, the Nasdaq edged up 0.09%, and the Dow Jones Industrial Average rose 0.43%, lifted largely by strong performance in chip stocks.

Semiconductor stocks rallied 1% after Taiwan Semiconductor Manufacturing Co. (TSMC) reported a robust 40% jump in Q2 sales, beating expectations and reinforcing optimism around AI-led demand.

Advanced Micro Devices also gained momentum following an upgrade to buy by a broker, while Nvidia extended its rally a day after breaching the $4 trillion market cap mark for the first time.

Stocks in Spotlight:

Tata Consultancy Services (TCS) declined 3.46%. The IT major reported a 4.38% jump in consolidated net profit to Rs 12,760 crore on 1.62% decline in revenue from operations to Rs 63,437 crore in Q1 June 2025 over Q4 March 2025. On a year-on-year basis, the company's consolidated net profit jumped 5.98% while revenue from operations increased 1.32% in Q1 June 2025.

The company's total contract value (TCV) dropped to $9.4 billion in Q1 June 2025, down 22.95% compared with $12.2 billion in Q4 March 2025. Additionally, the attrition rate was at 13.8% for the last twelve months (LTM), the highest in nearly two years.

K Krithivasan, chief executive officer and managing director, said, 'The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter.

Glenmark Pharmaceuticals surged 14.51% after its subsidiary Ichnos Glenmark Innovation (IGI) unveiled a global commercialization strategy for its lead investigational oncology asset, ISB 2001.

Enviro Infra Engineers jumped 12.19% after the company announced that it has secured a project from the Maharashtra Industrial Development Corporation (MIDC) aimed at pollution control of the Panchganga River worth Rs 400 crore.

Hindustan Unilever (HUL) surged 4.61% after the FMCG major announced the appointment of Priya Nair as its next chief executive officer and managing director, effective 1 August 2025. Nair, currently President, Beauty & Wellbeing at Unilever, will also join the HUL board subject to necessary approvals. She will continue to be a member of the Unilever Leadership Executive (ULE).

Zee Entertainment Enterprises (ZEEL) slipped 3.17% after shareholders rejected the proposal to issue fully convertible warrants to promoter group entities, blocking the Goenka family's plan to increase its stake from 3.99% to 18.39%.

Indian Renewable Energy Development Agency (IREDA) dropped 5.69% after the company's consolidated net profit declined 35.7% to Rs 246.88 crore despite a 29.7% increase in total income to Rs 1,959.84 crore in Q1 FY26 over Q1 FY25.

Anand Rathi Wealth rose 4.22% after the company reported a 27.8% jump in consolidated net profit to Rs 93.62 crore on 15.8% increase in total income to Rs 284.26 crore in Q1 FY26 over Q1 FY25.

Tata Elxsi slipped 1.18% after the company reported a 21.6% decline in net profit to Rs 144.4 crore as revenue from operations fell by 3.7% to Rs 892.1 crore in Q1 FY26 as compared with Q1 FY25.

GTPL Hathway slipped 4.31% after the company reported a 26.10% decline in consolidated net profit to Rs 10.56 crore for the first quarter of FY26, compared to Rs 14.29 crore in Q1 FY25. However, revenue from operations rose 7.15% YoY to Rs 903.69 crore for the quarter ended 30 June 2025.

RPP Infra Projects rose 1.85% after the company announced that RPP-BCC JV has bagged an order worth Rs 365.85 crore from the Public Health Engineering Department (PHED), Ajmer, Rajasthan.

Puravankara shed 0.98%. The company reported a 6% increase in pre-sales to Rs 1,124 crore in Q1 FY26 from Rs 1,064 crore in Q1 FY25. The company has achieved a quarterly sales volume of 1.25 million square feet for Q1 FY26 when compared to 1.29 million square feet in Q1 FY25.

RMC Switchgears hit an upper circuit of 5% after the company posted consolidated revenue of Rs 86.14 crore in the June quarter of FY26, recording over 165% YoY growth compared to Rs 34.04 crore in the same period last year.

IPO Update:

The initial public offer (IPO) of Smartworks Coworking Spaces received bids for 1,19,67,588 shares as against 1,04,01,828 shares on offer, according to stock exchange data at 16:51 IST on Friday (11 July 2025). The issue was subscribed 1.15 times.

The issue opened for bidding on Thursday (10 July 2025) and it will close on Monday (14 July 2025). The price band of the IPO is fixed between Rs 387 and 407 per share. An investor can bid for a minimum of 36 equity shares and in multiples thereof.

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