Sensex Nifty Stock Market – Why Market Is Down Today?

July 11, 2025: Why Market Is Down Today? The Indian stock market saw heavy losses on Friday, with the Nifty 50 plummeting below the 25,150 mark and benchmarks the Sensex dropping more than 700 points.

After opening at 82,820.76 compared to its previous close of 83,190.28, the Sensex fell more than 700 points, or over 1%, to an intraday low of 82,451.50.

In contrast to the previous finish of 25,355.25, the NSE equivalent Nifty 50 began the day at 25,255.50 and fell by almost 1% to an intraday low of 25,136.75.

The BSE Midcap and Smallcap indices also fell by about 1% during the session, indicating a broad-based selloff.

Investors lost over ₹3 lakh crore in a single day as the total market capitalization of BSE-listed companies fell to almost ₹457 lakh crore from ₹460 lakh crore in the previous session.

At 12:45 PM, the Nifty 50 was down 0.68 percent at 25,183, while the Sensex was down 615 points, or 0.74 percent, at 82,576.

What is behind today’s decline in the Indian stock market?
The domestic market is declining due to a number of causes. Let’s examine the five main causes of today’s market selloff:

Poor Q1 earnings start

On July 10, TCS released Q1 results that fell short of market expectations. The IT behemoth saw a decline in revenue for the third consecutive quarter.

TCS reported sales of $7.42 billion for the June quarter, which was 1.12% lower than the previous year and 0.59 percent lower than the previous quarter. The earnings lagged estimates of 33 analysts polled by Bloomberg, who expected TCS to clock $7.54 billion in revenue. This was TCS’s worst Q1 performance since June 2020, when its revenue fell 7 per cent sequentially. Market participants pointed out that the weak start of the earnings season has further deteriorated market sentiment, which has already been fragile for over a month now due to tariff-related concerns and elevated valuations.

Trump escalates the dispute over tariffs

On Thursday, July 11, US President Donald Trump set a 35% tariff rate for Canadian imports beginning August 1, further intensifying the trade battle. Additionally, he hinted that the baseline tariff rates for nations that do not receive tariff letters might be raised from the current 10% to 15% or 20%. Hopes for an early conclusion to the trade war have been crushed by Trump’s new tariff threats, which have raised concerns that additional tariffs will increase inflation and slow down the world economy.

Exaggerated market valuation

The market’s premium valuation appears to have made investors nervous as earnings continue to be gloomy. Kotak Mahindra AMC’s senior fund manager and head of equities research, Shibani Kurian, noted that because valuations are high, the market may provide modest returns in the near future. “At present, Nifty trades at a PE (price-to-earnings) of nearly 22 times FY26E EPS (earnings per share), with consensus estimating earnings growth at low double digits for FY26E,” Kurian stated. The overvaluation of the whole market is being rectified, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “Markets like South Korea, Germany, Japan, and MSCI EM are outperforming India. “The high valuations in India are primarily to blame for this,” Vijayakumar stated.

Investors flock to refuges

Investors’ risk appetites have been eroded by rising tariff-related uncertainty, as they are selling off riskier stocks and flocking to safe-haven assets like gold. While the MCX Silver September 5 contract reached a record high of ₹1,11,552 per kg during Friday’s session, the MCX Gold August 5 contract surged by almost 1% to an intraday high of ₹97,548 per 10 grams.