Market Update: Sensex Drops 700 Points and Nifty Falls Below 25,200 as IT, Oil & Gas, and Auto Stocks Fall 📉

Date: 11 July 2025

Time: 12:32 IST

Key Points: The Sensex dropped 674.80 points (0.81%) to 82,515.48.

The Nifty fell 190.20 points, or 0.75%, to 25,165.05.

The India VIX went up 2.14% to 11.92, which means that volatility is going up a little bit.

More shares fell than rose: 2,186 shares fell, 1,193 rose, and 129 stayed the same.

The worst performers were TCS, Wipro, Apollo Hospitals, M&M, and Bajaj Auto.

What Made the Sell-Off Happen?

The Indian stock markets fell sharply in the afternoon, mostly because of:

TCS's Q1 results were not good: This had a big effect on the IT sector, which saw a 1.85% drop in Nifty IT.

The auto and oil and gas indices also fell more than 1%, showing that the whole sector is weak.

Indian stocks have not done as well as stocks in South Korea, Germany, Japan, and the MSCI EM index, in part because they are overvalued.

Performance by sector

% Change in Sector Notes

IT -1.85%TCS results dragged Auto down by more than 1%.Continued pressure to sell

Oil and Gas: -1%Sector did not do well

Smallcap/Midcap: -1%Mirrored weak undertone

Nifty Bank: -0.54%Stocks in the banking sector are under pressure.

PSU Bank -0.60%

Private Bank -0.29%

FMCG: +0.85%Gave some help

Pharma+0.50%Helped soften the drop

Real estate, energy, and consumer goodsNegative: Losses seen everywhere

Market Mood and Expert Opinion 💬

"One of the most important trends in the first half of 2025 has been that large caps have done much better than the market as a whole. India has also fallen behind other countries, such as South Korea, Germany, Japan, and the MSCI EM index. This is mostly because its valuations are too high. TCS's Q1 results show that large-cap IT is still having problems, but midcap IT might do better. Telecom, oil and gas, and some auto segments are likely to do better than the rest of the quarter. In this market, investors should look for stocks that are fairly priced and have strong earnings visibility.

— V K Vijayakumar, Head of Strategy at Geojit Investments Limited

Volatility and Market Breadth: The India VIX is at 11.92, which means that volatility is going up a little, but not to the point of panic.

Market breadth is still negative, with more stocks going down than up. This shows that there is a broad-based sell-off.

What Should Investors Do? 🧐 Focus on value: With stretched valuations, stocks with strong earnings visibility should be at the top of your list.

Watch midcap IT: Midcap IT might do better than large-cap IT, which is having problems.

Look for sectors that do better than others. For example, telecom, oil and gas, and some auto segments may have chances.

Be careful: Keep a balanced approach because the global economy isn't doing well and some sectors are weak.

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