Markets Decline for 2nd Straight Week Amid Global Tariff Concerns; Sensex Falls 942 Points

The Indian equity market closed lower for the second consecutive week as investor sentiment weakened due to global trade tensions and caution ahead of the June-quarter earnings season. The announcement of fresh U.S. import tariffs by President Donald Trump raised concerns, particularly for export-dependent sectors. Additionally, markets awaited clarity on a potential India-U.S. trade deal and its implications across key industries.

For the week ended July 11, 2025, the S&P BSE Sensex declined 942.03 points or 1.11 per cent to close at Rs 82,500.47, while the Nifty 50 index shed 311.15 points or 1.22 per cent to finish at Rs 25,149.85. The BSE Mid-Cap index slipped 0.65 per cent to Rs 46,291.20, and the BSE Small-Cap index dropped 0.70 per cent to Rs 54,484.40.

The week began with marginal gains as the Sensex rose just 9.61 points on Monday. On Tuesday, indices saw modest gains after the U.S. delayed new tariff implementation to August 1. However, markets reversed course on Wednesday as tariffs on pharmaceutical imports—an important export sector for India—were proposed. The downward momentum continued on Thursday and Friday, driven by trade uncertainty and weak Quarterly Results from Large-Cap companies.

India’s foreign exchange reserves rose by USD 4.84 billion to USD 702.78 billion for the week ending June 27. Foreign currency assets increased by USD 5.75 billion, while gold reserves dipped by USD 1.23 billion. SDRs and the reserve position with the IMF also rose during the same period.

In terms of corporate action and earnings, several companies remained in the spotlight. Tata Consultancy Services (TCS) declined 4.54 per cent despite a 6 per cent YoY rise in net profit to Rs 12,760 crore, supported by strong operating margins and an interim dividend of Rs 11 per share. Titan Company slumped 8.88 per cent due to muted buyer growth in the jewellery segment. Tata Motors fell 1.06 per cent as JLR’s wholesale volumes contracted 10.7 per cent YoY.

Mahindra & Mahindra shed 2.76 per cent despite reporting a 20 per cent rise in June production. In contrast, Kotak Mahindra Bank rose 4.07 per cent, supported by strong growth in deposits and advances. Hindustan Unilever jumped 7.70 per cent following the announcement of Priya Nair as the new CEO and MD.

IREDA declined 4.01 per cent after posting a 35.7 per cent drop in net profit, whereas Anand Rathi Wealth rose 5 per cent on robust Q1 results. Tata Elxsi slipped 2.27 per cent on weaker revenue and profit. Vedanta fell 3.54 per cent following a negative report by Viceroy Research, which the company refuted. Madhya Bharat Agro Products gained slightly, reporting a 145.64 per cent rise in standalone profit, supported by a 104.48 per cent revenue increase.

In global markets, the UK GDP contracted for two straight months. South Korea and Australia kept interest rates steady, while China reported a 3.6 per cent drop in the producer price index. In the U.S., Federal Reserve minutes indicated possible rate cuts this year, though opinions among policymakers remain divided.

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