Indian equity benchmarks Sensex and Nifty ended Thursday’s session (July 10) on a weak note amid broad-based selling, particularly in IT and telecom sectors. The BSE Sensex shed
Indian equity benchmarks Sensex and Nifty ended Thursday’s session (July 10) on a weak note amid broad-based selling, particularly in IT and telecom sectors. The BSE Sensex shed 345.80 points to close at 83,190.28, while the NSE Nifty lost 120.85 points to settle at 25,355.25. Investors appeared cautious ahead of the Q1 earnings season, contributing to subdued sentiment despite positive global cues.
The primary trigger behind Thursday’s market decline was sustained weakness in IT and telecom stocks. Heavyweights such as Tech Mahindra, Infosys, Bharat Electronics, and Bharti Airtel featured prominently among the day’s laggards. The subdued performance of these stocks outweighed gains in other sectors and created a drag on the indices.
The IT sector, in particular, is grappling with growth uncertainty as global demand stabilizes. Ongoing concerns over tech spending in key markets like the US and Europe have led to investor nervousness. Additionally, telecom stocks have been under pressure due to tariff-related concerns, which continue to haunt investor confidence in the sector’s near-term earnings potential.
The upcoming Q1 earnings season has also kept market participants on edge. Investors are adopting a wait-and-watch approach, choosing to book profits in sectors that have rallied recently. Analysts expect earnings growth in sectors such as auto, FMCG, and financials, but IT is likely to see muted numbers due to delayed deal ramp-ups and currency headwinds.
Despite Thursday’s drop, Foreign Institutional Investors (FIIs) showed positive interest in Indian equities, making net purchases worth Rs 77 crore on July 9. This comes as a silver lining, indicating that overseas investors still see long-term potential in Indian markets. However, domestic investors are being more cautious due to global macroeconomic conditions and domestic valuation concerns.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked that the market continues to trade within a narrow range and is unlikely to break out decisively in the short term. He added:
“Resilience of the global markets and sustained fund flows into Indian markets have the potential to support the market at the bottom end of the range. A clear breakout above Nifty 25,500 may be possible if there is positive news such as a trade deal between India and the US. However, this seems to be partly priced in and might not lead to a sustained rally beyond that level.”
This suggests that while downside appears limited due to supportive factors, upside movement will require stronger triggers beyond speculation or external agreements.
On the global front, Asian markets presented a mixed bag. Hong Kong’s Hang Seng, South Korea’s Kospi, and China’s SSE Composite ended the day on a positive note, reflecting optimism over recovering economic indicators. However, Japan’s Nikkei 225 closed lower, tracking profit-booking and inflation concerns. US markets had closed in the green on Wednesday, providing a supportive backdrop to Asian and Indian indices alike.
Laggards from the Sensex pack:
Gainers from the Sensex pack:
The Indian stock market on July 10, 2025, witnessed selling pressure led by weakness in IT and telecom, as investors remain cautious ahead of earnings. While global sentiment and FII flows remain broadly positive, markets may continue to consolidate unless a strong domestic or global trigger provides fresh momentum. Investors should brace for volatility in the near term, especially with earnings announcements just around the corner.
FAQs
The markets declined due to selling pressure in IT and telecom stocks, combined with investor caution ahead of the Q1 earnings season.
Top losers included Tech Mahindra, Infosys, Bharat Electronics, Bharti Airtel, Eternal, and Asian Paints.
Yes, stocks like TCS, Bajaj Finance, Trent, Maruti, and Tata Steel posted gains despite overall weakness.
The market remains range-bound with a cautious outlook due to earnings uncertainty, despite positive global cues and FII inflows.
A potential trade deal between India and the US or strong Q1 earnings could push the market above the 25,500 level, but sustained momentum will need broader support.
