Money sinks here in the stock market
On the last trading day of the week, the stock market opened in red mark on 11 July. The market was also closed yesterday. In early trade, the Sensex fell by 232 points at 82,964 level, while the Nifty was trading at 25,302 levels by slipping 54 points. But on seeing this, the market declined and the Sensex broke more than 500 points around 10:30 in the morning. TCS has quarterly results behind this decline in the Sensex. The market continued to decline due to the quarterly results being expected. Apart from this, there are more major reasons, due to which there was an outcry as soon as the market opened.
After the opening of the market, there was a mixed trend in the sectoral index. The NIFTY IT index was the biggest decline, which fell 1.47 percent. Apart from this, Nifty Auto, Media, Realty, Consumer Durables and Oil & GAS sector were also trading in red mark. On the other hand, sectors like Nifty Bank, FMCG, Metal and Pharma were trading in green mark i.e. in the green mark.
In the early trade of July 11, TCS shares have seen a decline. In early trade, the stock slipped 1.8 per cent to a price of Rs 3,321. Actually, this fall has been seen after the quarterly results released by the company. However, the company's income declined by 1.6 per cent to Rs 63,437 crore from the previous quarter. The Ebit margin stood at 24.5 per cent and the company has announced to give dividend at Rs 11 per share.
The weak performance of TCS affected the sentiments of investors throughout the IT sector, including other IT companies' shares.
According to analysts, there is a slowdown in the demand for IT services in the US and Europe. The growth outlook for IT companies has been weak due to vigilance in spending and budget cuts from clients, which has shaken the trust of investors.
The reason for the decline is believed to be a warning to increase the tariff given by US President Donald Trump. Trump has said that he is planning to put a tariff of 15% to 20% on most trading partners of America. This statement showed restlessness in global markets and it also affected India.
