Mumbai, July 10, 2025 — Indian stock markets witnessed a sharp decline in Wednesday’s trading session, with the BSE Sensex falling over 300 points and the Nifty 50 slipping below the psychological 25,400 mark. The downturn was primarily led by weakness in IT stocks, global macroeconomic concerns, and cautious investor sentiment ahead of key domestic data releases.
Market Overview:
At market close, the Sensex ended 310 points lower at 83,915, while the Nifty 50 closed at 25,390, down 92 points. The decline came despite some support from banking and FMCG stocks, which tried to cushion the fall but couldn’t offset the heavy selling in the technology and midcap segments.
Key Reasons Behind the Decline:
1. IT Sector Weakness:
The IT sector was the biggest drag on the indices. Leading players like Infosys, TCS, Wipro, and HCL Tech saw sharp selling pressure, falling between 2–3%. This came after global IT consulting firms flagged lower client spends and delays in deal closures, especially in the U.S. and Europe.
Additionally, analysts downgraded some major IT stocks following weaker-than-expected Q1 earnings previews. The Nifty IT index dropped by over 2.6%, marking its sharpest intraday fall in the past four weeks.
2. Weak Global Cues:
Global stock markets remained subdued amid concerns over U.S. inflation data expected later this week. Wall Street’s overnight losses, along with a drop in tech-heavy Nasdaq, impacted Indian IT sentiments.
Moreover, geopolitical tensions in Europe and uncertainty over interest rate decisions by global central banks added to the risk-averse mood.
3. Profit Booking at Higher Levels:
Indian equities have been on a strong run in recent weeks, hitting record highs. The Nifty recently touched a lifetime high of 25,600 and the Sensex crossed 84,000. However, with valuations becoming stretched, investors resorted to profit booking at higher levels, especially in overbought sectors like IT and realty.
4. Awaiting Domestic CPI and IIP Data:
Investors remained cautious ahead of the Consumer Price Index (CPI) inflation and Index of Industrial Production (IIP) data due later this week. Market participants are expecting a slight uptick in retail inflation due to higher food prices, which could influence RBI’s monetary policy stance.
Top Losers and Gainers:
| Top Losers (Nifty) | % Change |
| Infosys | -3.1% |
| TCS | -2.7% |
| Wipro | -2.5% |
| HCL Technologies | -2.2% |
| LTIMindtree | -2.1% |
| Top Gainers (Nifty) | % Change |
| ITC | +1.9% |
| Axis Bank | +1.7% |
| HUL | +1.5% |
| SBI | +1.3% |
| Britannia | +1.2% |
FMCG stocks were among the gainers, driven by strong rural demand outlook and lower input cost inflation. Banks like Axis and SBI also saw buying interest amid healthy Q1 business updates.
Sectoral Highlights:
- Nifty IT: -2.6% (Biggest sectoral loser)
- Nifty FMCG: +1.4% (Gained on defensive buying)
- Nifty Bank: +0.6% (Steady performance)
- Nifty Midcap 100: -0.9%
- Nifty Realty: -1.2%
The midcap and smallcap indices also declined, reflecting broad market weakness and concerns over valuations.
Expert Insights:
According to Vinod Nair, Head of Research at Geojit Financial Services,
“The market correction was long due after the recent rally. IT stocks led the decline, impacted by global headwinds and margin pressures. We expect volatility to persist ahead of macro data releases and Q1 earnings season.”
Ruchit Jain, Lead Research Analyst at 5Paisa, said:
“Technically, Nifty has broken key intraday support of 25,450. Further downside cannot be ruled out towards 25,200 if weakness continues. Traders should stay cautious and avoid aggressive long positions.”
Rupee and Oil Update:
The Indian Rupee weakened slightly, trading at ₹83.55 per US dollar, as foreign investors turned cautious. Meanwhile, Brent crude oil hovered near $85.30 per barrel, supported by tighter supply outlook but capped by global demand concerns.
What Should Investors Do Now?
- Stay cautious on IT stocks, especially until Q1 results provide clearer direction.
- Focus on large-cap defensives like FMCG and banking, which are showing relative strength.
- Avoid over-leveraging, as markets may see further volatility in the short term.
- Track domestic inflation and global cues, especially U.S. CPI and Fed comments, for near-term market movement.
Outlook Ahead:
The market trend in the coming days will be shaped by:
- Domestic macroeconomic data (CPI and IIP),
- Q1FY26 earnings season,
- U.S. inflation print and Fed commentary,
- Foreign investor activity.
Despite today’s fall, market fundamentals remain intact for the medium term. However, valuations remain a concern, and any adverse global trigger can lead to sharp corrections.
Conclusion:
The decline in Sensex and Nifty today is a reminder of the fragile global and domestic sentiment. While long-term investors may see this as an opportunity to accumulate quality stocks at lower prices, short-term volatility is expected to continue, especially in interest rate-sensitive and global-facing sectors like IT.
Stay informed, stay patient, and diversify your portfolio to manage the current market uncertainty.
I am a digital marketing executive as well as content writer in the stock market and crypto related blogs. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of stock market and crypto.
