Indian stock market suffered significant losses in Friday’s session, wIth benchmarks the Sensex falling over 600 points and the Nifty 50 slipping below the 25,200 mark during the session.
The Sensex opened at 82,820.76 against its previous close of 83,190.28 and dropped over 650 points, or 0.80 per cent, to an intraday low of 82,535.93.
The NSE counterpart Nifty 50 started the day at 25,255.50 against the previous close of 25,355.25 and declined 0.80 per cent to an intraday low of 25,162.55.
The selloff was broad-based as the BSE Midcap and Smallcap indices also dropped by 0.70 per cent each during the session.
Around 11 AM, the Sensex was 631 points, or 0.76 per cent, down at 82,559, while the Nifty 50 was 0.72 per cent down at 25,173.
Why is the Indian stock market falling today?
A combination of factors is dragging the domestic market down. Let’s take a look at five key factors behind the market selloff today:
1. Weak start of Q1 earnings
TCS reported Q1 numbers on July 10, which failed to meet market expectations. It was the IT giant’s third straight quarter of lower revenue.
As Mint reported, TCS recorded revenue of $7.42 billion in the June quarter, down 0.59 per cent quarter-on-quarter and 1.12 per cent from a year before. The earnings lagged estimates of 33 analysts polled by Bloomberg, who expected TCS to clock $7.54 billion in revenue. This was TCS’s worst Q1 performance since June 2020, when its revenue fell 7 per cent sequentially.
Market participants pointed out that the weak start of the earnings season has further deteriorated market sentiment, which has already been fragile for over a month now due to tariff-related concerns and elevated valuations.
2. Trump intensifies tariff tussle
Us President Donald Trump further escalated the trade war as he, on Thursday, 11 July, announced a 35 per cent tariff rate for goods imported from Canada, starting August 1.
Moreover, he signalled that the baseline tariff rates for countries that do not get tariff letters could be set at 15 per cent or 20 per cent, higher than the current 10 per cent.
(This is a developing story. Please check back for fresh updates.)
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
