Indian Benchmark Indices Set to Open Lower as Tariff Concerns Weigh; TCS Posts Q1 FY26 Earnings

Pre-Market Update at 7:45 AM: Indian equity benchmarks are likely to begin Friday’s session, July 11, on a negative note, tracking weak global cues and tariff-related concerns. As of 7:19 AM, the GIFT Nifty was down by 125 points and hovered near the 25,285 mark, suggesting a possible gap-down opening for the Nifty 50 and the Sensex.

Asian markets were trading mixed, even though U.S. markets closed higher overnight. The S&P 500 and Nasdaq Composite recorded new all-time highs. However, the sentiment in Indian markets remains cautious due to rising uncertainty around Donald Trump’s proposed trade tariffs. The former U.S. President announced a 35 per cent tariff on imports from Canada, effective next month, and indicated plans to impose tariffs ranging between 15 per cent and 20 per cent on goods from several other countries. Adding to market concerns, St. Louis Fed President Alberto Musalem remarked that it is too soon to assess the full inflationary impact of these new tariff measures.

Meanwhile, Tata Consultancy Services (TCS) declared its Q1 FY26 results for the quarter ended 30 June 2025. The company posted consolidated revenue of Rs 63,437 crore, reflecting a 1.3 per cent year-on-year increase, though revenue declined 3.1 per cent in constant currency terms. Net profit stood at Rs 12,760 crore, up 6 per cent from the same period last year, with a net margin of 20.1 per cent — an improvement of 90 basis points. Operating margin rose to 24.5 per cent, up 30 basis points quarter-on-quarter. The firm generated Rs 12,804 crore in net operating cash, which accounted for 100.3 per cent of its net income. TCS secured a Total Contract Value (TCV) worth USD 9.4 billion during the quarter. The company added 6,071 employees over the past year, bringing the total headcount to 613,069. The LTM attrition rate in IT services was reported at 13.8 per cent. The board also declared an interim dividend of Rs 11 per share, with a record date of 16 July 2025 and payment scheduled for 4 August 2025.

Foreign Institutional Investors (FIIs) were net buyers on Thursday, July 11, purchasing equities worth Rs 221.06 crore. Domestic Institutional Investors (DIIs) were also active on the buying side, with net purchases of Rs 591.33 crore.

On the previous trading day, July 10, Indian stock markets ended in the red for a second straight session. The Nifty 50 declined by 120.85 points or 0.47 per cent to close at 25,355.25. The Sensex also fell by 345.80 points or 0.41 per cent, ending the day at 83,190.28. The overall tone remained cautious amid global market headwinds and ahead of further earnings announcements.

U.S. equity markets, on the other hand, closed positively. The Dow Jones Industrial Average advanced by 192.34 points or 0.43 per cent to 44,650.64. The S&P 500 rose by 17.20 points or 0.27 per cent to 6,280.46, and the Nasdaq Composite gained 19.33 points or 0.09 per cent to finish at 20,630.67. In economic data, U.S. jobless claims fell for the fourth straight week. For the week ending 5 July, the number of Americans filing for unemployment benefits dropped by 5,000 to a seasonally adjusted 227,000 — the lowest level in seven weeks.

In the cryptocurrency and commodities space, Bitcoin reached an all-time high of USD 116,608.78, supported by institutional buying. It was last seen trading at USD 115,561.07, up 4.01 per cent. Ethereum also moved higher, rising 6.02 per cent to USD 2,932.86. Crude oil prices showed minor recovery after a recent dip. Brent crude rose 0.34 per cent to USD 68.87 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.47 per cent to USD 66.88 per barrel.

For today, RBL Bank and Hindustan Copper remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.