Market Tanks as Investors React to Earnings Shock

Stock traders in India had a bumpy ride on July 11, 2025. By the closing bell, the BSE Sensex had tumbled 689.81 points, settling at 82,500.47. The Nifty 50 followed suit, sliding 205.40 points to 25,149.85. Nearly every sector joined the slide, but the trigger was clear: a disappointing start to the earnings season, especially in tech stocks.

Tata Consultancy Services (TCS), a heavyweight in the Indian IT scene, caught everyone’s attention when it announced a 3.1% year-on-year slip in constant currency revenue for the first quarter of FY26. Investors were already jittery, and the miss was enough to send TCS shares down by 2.5%. It didn’t stop there — Wipro and Infosys, also key players, took a beating. The Nifty IT index nosedived by 1.7%. For people who track tech stocks, it was tough to watch as the sector set the tone for the day.

The slide in IT stocks had a domino effect. We saw the Nifty Midcap 100 drop 0.8% and the Smallcap 100 scrape out a 1% loss. The pain wasn’t limited to tech, though. When sector leaders stumble, it spooks the broader market — and that’s exactly what played out.

Trade War Rhetoric Stirs Fresh Worries

Just as investors were digesting the tech earnings letdown, global headlines added more fuel. Former U.S. President Donald Trump fired off plans for a 35% tariff on Canadian imports and hinted at 15–20% tariffs for other major trading partners. That’s not small talk. For Indian companies — especially those dependent on exports — the fear is real. Delays in the India-U.S. trade pact negotiations only added to the anxiety.

We also need to factor in what’s happening with oil. Comments from Trump about putting new sanctions on Russia sent oil prices higher, pushing costs up for oil importers like India. That spells trouble for sectors already reeling, especially auto and oil & gas. On July 11, the Nifty Auto index shed nearly 1.8%, while oil & gas giants and financial stocks lost more than half a percent each.

Outside the usual suspects, even more defensive stocks offered only mild comfort. Pharmaceuticals and FMCG ticked up about 0.55% each, but that’s not enough to offset steep drops elsewhere.

If you’re looking for a bigger picture, check this out: The total market capitalization for BSE-listed firms shrank by Rs 3.03 lakh crore in just one day. That’s not just a number — it’s a statement of how spooked investors get when both local and global factors look shaky.

For many seasoned traders, the real worry is lurking below the surface. Valuations have been running hot for a while, especially in sectors like tech and textiles that rely on global buyers. When earnings disappoint and trade tensions spike, those stretched prices are quick to come undone. July 11th showed just how fast it can happen.