The Indian stock market saw a sharp fall on Friday, July 11, 2025. The Sensex dropped by more than 700 points and the Nifty 50 index fell below the 25,150 mark. By 2 PM, the Sensex was down 621 points at 82,569, and the Nifty had dropped 0.72% to 25,172. Here are five key reasons behind this sudden fall:
1. Weak Q1 Earnings Start
TCS, one of India’s top IT companies, posted poor results for the April-June quarter. It reported $7.42 billion in revenue, which was lower than expected and marked its third straight quarter of declining sales. This weak start to the earnings season hurt investor confidence.
2. Global Tensions on Trade
US President Donald Trump announced a 35% tariff on goods from Canada starting August 1. He also hinted at higher tariffs (15–20%) for other countries. These moves have increased fears of a global slowdown and rising inflation, pushing investors to sell stocks.
3. Overvalued Market
Experts believe the Indian market has been trading at high valuations. As earnings fail to keep up, many investors are becoming cautious. With the Nifty trading at 22 times its expected earnings for FY26, analysts warn that returns could be moderate in the short term.
4. Investors Move to Safe Assets
With increasing uncertainty, investors are turning to safer assets like gold and silver. Gold prices rose by nearly 1% to ₹97,548 per 10 grams, and silver touched a record high of ₹1,11,552 per kg.
5. Technical Signals of Weakness
Market charts are showing signs of further downside. Experts say that if the Nifty breaks below 25,170, it may fall to 25,050. Technical patterns are bearish, and a further fall is likely unless the index quickly bounces back above 25,500.
In short, poor earnings, global tension, high valuations, investor caution, and weak technicals are all dragging the market down. Experts advise looking for value buying opportunities if the market drops to the 25,050–25,150 range.
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