Why IT Stocks Are Falling on July 11, 2025? Nifty IT Down 2% as TCS Results Disappoint

Indian markets are falling sharply on Friday, and IT companies are the main reason. The Nifty IT index dropped nearly 2% during the session, with all 10 companies in the sector trading lower. From large players like TCS to smaller firms, tech stocks were under pressure due to disappointing earnings and global worries.

1. Weak Q1 Results from TCS

Tata Consultancy Services (TCS) announced its June quarter results on Thursday evening. The company reported a 6% year-on-year rise in net profit to ₹12,760 crore. But revenue growth was weak, rising just 1.3% year-on-year and falling 3.1% in constant currency. This was the third straight quarter of slow growth.

Investors are now waiting for results from HCL Tech (July 14), LTTS and Tech Mahindra (July 16), LTIM (July 17), and Infosys (July 23).

2. Global Trade Tensions Rising

U.S. President Donald Trump announced a 35% tariff on Canadian imports, starting August 1. He also mentioned that tariffs could go up to 15–20% for many countries. Since Indian IT companies earn most of their revenue from clients in the U.S. and Europe, this news caused fresh worries for investors and clients.

Read more: Hindustan Unilever (HUL) FY25 Earnings Results Decoded: Hers’s What You Need to Know!

3. Overall Weakness in the Market

The decline in IT stocks is part of a bigger sell-off across the market. By mid-day, the Sensex and Nifty were both down sharply, with losses spreading across sectors. Midcap and smallcap indices also fell around 0.70%.

Within the Nifty IT index, TCS lost 3%, leading the fall. Wipro, LTI Mindtree, Oracle Financial, HCL Tech, Infosys, Coforge, and Mphasis were all down between 1% and 3%. Even Tech Mahindra, which held up better, was still trading lower.

Conclusion

Tech stocks are facing multiple challenges, including weak earnings from top companies like TCS, rising global trade tensions, and overall negative sentiment in the market. Investors should stay cautious and watch upcoming quarterly results for more clarity on whether IT companies can recover in the near term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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