Sensex down 700 pts, Nifty below 25,200 as weak TCS Q1 weighs; IT, auto, oil & gas stocks fall

Benchmark indices Nifty and Sensex deepened losses in afternoon trade on July 11, dragged down by sustained selling in IT, auto, and oil & gas stocks. Broader markets also slipped nearly a percent, mirroring the weak undertone. Gains in pharma and FMCG offered some cushion but weren’t enough to offset the overall decline.

At about 12:20 pm, the Sensex was down 674.80 points or 0.81 percent at 82,515.48, and the Nifty was down 190.20 points or 0.75 percent at 25,165.05. About 1193 shares advanced, 2186 shares declined, and 129 shares remained unchanged.

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"A key trend in the first half of 2025 has been the clear outperformance of large caps over the broader market. India has also lagged global peers like South Korea, Germany, Japan, and the MSCI EM index, largely due to stretched valuations. TCS’s Q1 results highlight ongoing challenges for large-cap IT, though midcap IT may fare better. The quarter’s likely outperformers include telecom, oil and gas, and select auto segments. In this environment, investors would do well to focus on reasonably valued stocks with strong earnings visibility," says V K Vijayakumar, Chief Strategist at Geojit Investments Limited.

Sectoral indices on the NSE were largely in the red during intraday trade on July 11, with broad-based weakness across key sectors. Nifty IT was the top laggard, down 1.85 percent, followed by Auto, and Oil & Gas, which were lower by over 1 percent each. Smallcap, and Midcap indices also saw cuts nearing 1 percent. Banking stocks remained under pressure, with Nifty Bank down 0.54 percent, PSU Bank falling 0.60 percent, and Private Bank slipping 0.29 percent. Losses were also seen in Consumer Durables, Energy, and Realty. In contrast, FMCG and Pharma provided some support, rising 0.85 percent and 0.50 percent, respectively. India VIX edged up 2.14 percent to 11.92, indicating a mild rise in market volatility.

Also read: Who are in charge of Jane Street India?

Among individual stocks, Glenmark Pharma stole the show with gains of 17 percent. This comes after the company announced that its subsidiary has signed an exclusive global licensing agreement for its investigational asset ISB 2001 with New York-based AbbVie. ISB 2001 is currently in the first phase of clinical trials for patients suffering from relapsed or refractory multiple myeloma, a type of cancer, the company said in an exchange filing.

Shares of Hindustan Unilever jumped up to 5 percent on July 11 after the company announced Priya Nair as its new MD & CEO, succeeding Rohit Jawa, who steps down after a two-year stint. Nair, currently President of Beauty & Wellbeing, will be the first woman to lead HUL in its 92-year history. She oversees a €13.2 billion global portfolio, including brands like Dove, Sunsilk, Clear, and Vaseline.

Read more: Glenmark’s R&D bet pays off handsomely with AbbVie deal, vindicating backer-in-chief Saldanha

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.

"Nifty Index formed a Bearish Engulfing pattern on the daily chart, hinting at a short-term reversal. It is hovering near the 0.382 Fibonacci level and key support at 25,330–25,300. A breakdown below this zone may push it towards 25,100–25,000. On the upside, resistance is placed at 25,500, with a major hurdle near 25,600. The index remains under pressure unless it reclaims these levels," Mandar Bhojane of Choice Equity Broking said. For Bank Nifty, he said immediate support lies at 56,700–56,500, with a breakdown possibly taking it to 56,000. On the upside, resistance is at 57,000, with a key hurdle at 57,300–57,500. A breakout above this zone is crucial for bullish momentum to resume.

HUL, SBI Life Insurance, Nestle, Sun Pharma, and Axis Bank were the top gainers on the Nifty. Laggards on the index included TCS, Wipro, Apollo Hospitals, M&M, and Bajaj Auto.

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