New Delhi: The Indian stock market ended sharply lower on Friday, July 11, as worries about global trade and a weak start to the quarterly earnings season put pressure on investors. The Sensex dropped by 690 points, or 0.83 percent, closing at 82,500.47. The Nifty 50 also fell, losing 205 points, or 0.81 percent, to finish at 25,149.85.
The market opened in the red, mainly because of growing trade tensions between the US and other countries. This negative mood got worse after IT giant TCS reported disappointing results, which dragged down the whole IT sector. Heavy profit-taking in big stocks from other sectors added to the decline. As a result, the Nifty slipped below its 20-day exponential moving average, breaking the recent positive trend. Experts now expect the market to consolidate, meaning it could move sideways for a while, with volatility likely to stay high as more companies announce their earnings. Traders are being advised to be extra careful, manage their risks, and be picky about which stocks they trade.
Over the week, the markets fell by more than one percent, mainly due to ongoing worries about global tariffs and the weak start to earnings. The first half of the week was relatively stable, but selling in the last few sessions dragged the indices down to their lowest levels of the week.
According to research from Bajaj Broking, the Nifty formed a big bearish candle on the charts, showing a continued correction for the third day in a row. Most of the trading was focused on individual stocks, as investors waited for clearer signals on both the broader economy and company performance. The Nifty has now retraced 38.2 percent of its previous up move in just 10 sessions, which is a relatively shallow pullback. This suggests the overall structure is still positive, and a higher bottom could form soon. There is strong support for the Nifty between 24,900 and 25,100, an area marked by important technical indicators. Analysts expect the index to hold above this support and possibly move higher towards the 25,500–25,600 range in the coming weeks. They see the current dip as a buying opportunity for long-term investors.
For the Bank Nifty, Bajaj Broking said the index also formed a bearish candle, signaling a continued correction for the second day. The index has been moving sideways between 56,500 and 57,600. If it drops below 56,500, it could fall further towards the 56,000–55,500 support area. However, the broader trend is still positive, and dips are seen as buying opportunities.
On the global front, the US is working on a temporary trade deal with India that could lower proposed tariffs to under 20 percent. Unlike some other countries, India is not expecting a formal tariff notice, and the deal is likely to be announced soon.
Meanwhile, US President Donald Trump has threatened to impose a 30 percent tariff on imports from Mexico and the European Union starting August 1. Both the EU and Mexico criticized these proposed tariffs but said they would keep negotiating with the US.
The earnings season has just started, with TCS disappointing investors. Over 50 companies are set to announce their results next week, which could keep the market volatile. In the IPO space, three new public issues are opening, including Anthem Biosciences, and six new listings are expected.
Foreign investors continued to sell Indian stocks, with Foreign Portfolio Investors (FPIs) offloading equities worth Rs 5,104 crore, while Domestic Institutional Investors (DIIs) bought Rs 3,558 crore worth of shares. So far this year, FPIs have been net sellers, selling stocks worth Rs 1.25 lakh crore, while DIIs have been net buyers with total purchases of Rs 3.60 lakh crore. July has seen the first negative FPI inflow after three months of positive numbers.
Oil prices rose more than 2 percent on Friday after the International Energy Agency said the market is tighter than it looks. Brent crude closed at Rs 70.36 per barrel, up Rs 1.72, while US crude settled at Rs 68.45 per barrel, up Rs 1.88.
Technically, experts say the Nifty has dropped below its key short-term moving average and is now in a consolidation zone between 24,500 and 25,200. This break has ended the recent positive trend, and the index could stay range-bound for a while. The 24,500–24,900 zone is seen as strong support, while 25,550 is the first hurdle if the market tries to bounce back. The banking index is still showing some strength, but mixed signals from private banks are keeping investors cautious about the next move.
