Indian equities, already struggling to gain momentum amid resurfacing global trade tensions, witnessed a sharp sell-off in Friday’s session, July 11, as weaker-than-expected June quarter results from TCS dampened investor sentiment, triggering a broader decline across IT stocks and setting a weak tone for the earnings season ahead.
While the rally in consumer goods and pharma stocks provided some support, it wasn’t enough to lift the indices higher, as losses in tech, banking, and auto stocks deepened toward the close. As a result, the Nifty 50 declined 0.81% to settle at 25,146 points, ending the week with a 1.23% drop.
The S&P BSE Sensex also ended lower, falling 0.74% to close at 82,496 points, and registered a weekly loss of over 1.06%. Losses in the broader markets were even steeper, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each declining nearly 2% for the week.
Apart from the weak earnings from TCS, sentiment was also weighed down by comments from U.S. President Donald Trump, who said he would impose a 35% tariff on imports from Canada next month and was considering blanket tariffs of 15% to 20% on most other trade partners.
Earlier in the week, the administration also announced 50% duties on copper imports and Brazilian goods, all set to take effect on the same date, and also announced a plan to impose a 200% tariff on pharma imports.
On Wednesday, Trump sent letters dictating new U.S. tariff rates on goods from at least six more countries, including the Philippines and Iraq. This comes after Trump posted letters setting new duties earlier this week to the leaders of 14 other countries, including South Korea and Japan.
Meanwhile, New Delhi is trying to finalize a deal with the US. It has been reported that an Indian trade delegation is likely to visit Washington in the coming days for further talks. If the negotiations succeed, India would join a short list of countries—including Vietnam, China, and the UK—that have secured trade agreements with Washington.
