Sensex declines 650 points: Here's why market is down today
What's the story
The Indian stock market witnessed a major downturn on Friday, with the BSE Sensex plunging over 650 points. The fall was mainly triggered by disappointing earnings from Tata Consultancy Services (TCS), fresh trade tensions after new US tariffs on Canada, and fears of potential sanctions on Russia. At the time of writing, the BSE Sensex was trading at 52,544—down by nearly 645 points.
Earnings impact
TCS's disappointing results lead to broad-based selling
TCS's Q1FY26 results failed to meet revenue expectations, prompting a cautious approach from the broader market. The IT giant's stock fell as much as 2.5% to ₹3,297 after it reported a 6% YoY rise in net profit to ₹12,760 crore—slightly above estimates—but a 3.1% YoY decline in constant currency revenue. This led brokerages to revise their earnings estimates for FY26 downward amid global uncertainty and clients delaying discretionary tech spending.
Market reaction
IT stocks drag market down further
The negative sentiment from TCS's results affected other major IT stocks as well. Infosys, Wipro, LTIMindtree, and Tech Mahindra saw their shares fall between 1-3%, dragging the Nifty IT index down by 2.1%. The broader market capitalization of BSE-listed companies also fell by ₹3.03 lakh crore to ₹457.22 lakh crore at the time of writing.
Trade tensions
Trump's new tariffs raise concerns of larger trade war
US President Donald Trump's announcement of a 35% tariff on imports from Canada next month and possible 15%-20% blanket tariffs on other major trade partners has raised concerns of a larger trade war. The move has negatively impacted global investor sentiment, with Nasdaq and S&P 500 futures falling about 0.4%. Earlier this week, Trump had postponed some tariffs to August 1 for negotiations but expanded duties on key allies like Japan and South Korea.
Sanction impact
Oil prices spike on Trump-Russia speculation
Oil prices have also witnessed a spike after Trump hinted at an announcement regarding Russia, sparking speculation about new sanctions. Brent crude rose to $68.83 a barrel while US WTI crude jumped to $66.81. The prospect of tighter supply pushed oil prices higher but gains were limited by fears of rising OPEC+ output and persistent trade-related uncertainty.