Why Is Stock Market Down Today? Know Key Factors Behind Sensex, Nifty Decline On July 11
Last Updated:July 11, 2025, 14:57 IST
The BSE Sensex was trading lower by nearly 660 points or 0.8% at 82,530, while the NSE Nifty fell by nearly 200 points or 0.79% at 25,152.
The Indian stock market is down by nearly 0.8% on Friday.
Why Stock Market Is Falling Today, July 11: The Indian stock market on Friday continued its downward trend, with the BSE Sensex and the NSE Nifty declining by 0.8%. As of 2:38 pm, the BSE Sensex was trading lower by nearly 660 points or 0.8% at 82,530, while the NSE Nifty fell by nearly 200 points or 0.79% at 25,152. Here are the key factors why markets are falling today:
IT Stocks Under Pressure After TCS Q1 Results
Shares of Tata Consultancy Services (TCS) fell over 2.5% after the company reported its Q1FY25 results. While net profit rose 6% to Rs 12,760 crore (largely aided by non-core income), revenue declined by nearly 3% on a constant currency basis due to macro headwinds and the ramp-down of the BSNL deal.
Also Read: Nifty IT Drops 1% After TCS Q1 Miss; Infosys, Wipro, LTIMindtree Extend Losses
The Nifty IT index fell as much as 1.5%, with all 10 constituents trading in the red.
“Q1 results of TCS indicate continuing struggle for IT companies, particularly large-cap IT. However, midcap IT is likely to do well,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Ajay Bagga, a banking and market expert, said, “IT sector’s weak performance will keep the sector subdued as the results and guidances provided so far have been underwhelming.”
Uncertainty Over India-US Trade Deal
Investor sentiment remained cautious as uncertainty loomed over the India-US bilateral trade agreement, keeping markets on edge. A commerce ministry team will soon visit Washington for another round of talks on the proposed trade agreement with the US to iron out differences in sectors, like agriculture and automobiles.
This visit is significant as the US has further extended the imposition of additional import duties (in the case of India, it is 26 per cent) till August 1. India is seeking the removal of this additional tariff.
Weak Global Cues
US stock futures were in the red after US President Donald Trump announced a 35% tariff on imports from Canada and proposed broader tariffs of 15-20% on other trade partners. While Wall Street closed higher on Thursday, Trump’s tariff remarks renewed global concerns over trade protectionism.
On Thursday, Trump said US would impose a 35% tariff on imports from Canada and planned to impose blanket duties of 15% or 20% on most other trade partners. This follows Wednesday’s announcement of a 50% tariff on US copper imports and a similar levy on goods from Brazil, along with tariff notifications sent earlier to other trading partners, including Japan and South Korea. All newly announced tariffs will take effect on August 1.
Rise in India VIX
The India VIX, a measure of market volatility, rose nearly 2% to 11.87, reflecting heightened nervousness amid Q1 earnings season and uncertainty over the India-US trade deal.
Trump-Fed Tensions
President Trump reiterated his demand for the US Federal Reserve to cut interest rates by at least 300 basis points to lower debt servicing costs. A Fed seen as bowing to political pressure could dent its credibility and spark concerns about financial stability and policy consistency.
Climb in Crude Oil Prices
Brent crude futures rose 0.35% to $68.88 a barrel following Trump’s comments suggesting possible action on Russia, sparking fears of fresh sanctions. Rising oil prices are negative for India, which relies heavily on crude imports.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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