TCS, Infosys, Wipro Slide as Accenture Weakness Adds to IT Selloff; Sensex Falls Over 700 Points

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Last Updated: 11th July 2025 - 04:56 pm

2 min read

Indian stock markets witnessed a sharp decline on Friday, July 12, 2025, as major IT stocks came under selling pressure following Tata Consultancy Services’ muted Q1 earnings. Broader concerns over the delayed India-U.S. trade deal, rising global tensions, and higher crude oil prices further dampened investor sentiment.

BSE Sensex had dropped by 689.81 points (0.83%) to 82,500.47, while the Nifty50 shed 25,149.85 points (0.81%) to close at 25,149.85, slipping below its crucial 20-day moving average (20-DMA) of 25,245.

IT Stocks Lead the Decline

The fall in the markets was primarily driven by heavy selling in the IT sector, particularly large-cap tech firms. Shares of TCS declined over and closed by 3.47% after the company reported a 6% rise in net profit to ₹12,760 crore for Q1 FY26, aided mainly by higher non-core income. However, its revenue growth disappointed, with rupee revenue rising just 1.3% to ₹63,437 crore and falling over 3% in constant currency terms, mainly due to the winding down of the BSNL deal and ongoing macro headwinds. Accenture also shrank down along with the other it majors by 3.16% today.

The Nifty IT index slipped & closed by as much as 1.78%, with all its ten constituents trading in the red. Besides TCS, shares of Wipro, Infosys, LTIMindtree, and Tech Mahindra fell between 1–2% during morning trade.

Market experts indicated that while large-cap IT firms continue to face pressure, mid-cap IT players may perform better in the near term due to more substantial growth potential and better valuations.

Other Key Factors Behind Market Weakness

1. Trade Deal Uncertainty

Investor caution rose amid delays in the India-U.S. trade deal. A commerce ministry team is expected to visit Washington for further talks. The U.S. has extended the suspension of additional tariffs on Indian goods till August 1, 2025, which has kept markets on edge.

2. Global Trade Tensions

Fresh concerns emerged after U.S. President Donald Trump proposed a 35% tariff on imports from Canada and potential broader tariffs on other trading partners. These comments stoked fears of another round of global trade disruptions.

3. Crude Oil Price Spike

As of 4:00 pm July 11, 2025, Brent crude futures rose by 0.39% to $68.88 a barrel amid fears of renewed sanctions on Russia, fuelling inflationary concerns for India, which relies heavily on oil imports.

4. U.S. Fed Concerns

Trump’s call for the Federal Reserve to slash interest rates by three percentage points added to market discomfort. Fears over the Fed’s independence and potential political influence on rate decisions rattled global investor confidence.

5. India VIX Rises

The India VIX, a volatility index known as the market’s “fear gauge,” rose by 2% to 11.87, indicating growing uncertainty during the ongoing earnings season and ahead of key global events.

Conclusion

Pressures from both domestic and international sources are affecting Indian markets. TCS's lower-than-expected earnings triggered a selloff in IT stocks, but rising oil costs, trade deal uncertainty, and geopolitical worries further deteriorated investor mood. Analysts advise concentrating on high-quality firms with excellent earnings visibility as the Nifty IT index remains under pressure until more information about macro drivers becomes available.

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