Sensex, Nifty 50 crash almost 1%, investors lose over ₹3 lakh crore— 10 key highlights from Indian stock market today

Mumbai, July 11, 2025 — Indian equity benchmarks witnessed a sharp decline on Thursday, with both the Sensex and Nifty 50 falling nearly 1% as broad-based selling gripped the markets. The total investor wealth eroded by more than ₹3 lakh crore amid a combination of global cues, profit booking, and sectoral weakness, especially in banking and IT stocks.

Here are the 10 key highlights from today’s stock market session:

1. Benchmark Indices Drop Sharply

The BSE Sensex plunged 713.66 points or 0.91% to close at 77,730.66, while the Nifty 50 slumped 213.50 points or 0.83% to end at 23,639.50. This marks one of the steepest one-day falls in July so far, with investors turning risk-averse amid mixed global cues.

2. Investor Wealth Erodes by ₹3 Lakh Crore

The sharp fall in indices led to a significant erosion in market capitalisation. The BSE’s total market capitalisation dropped from ₹442.5 lakh crore to around ₹439.4 lakh crore, wiping out over ₹3.1 lakh crore in a single session.

3. IT, Banking and FMCG Stocks Lead Decline

Infosys, TCS, ICICI Bank, HUL, and HDFC Bank were among the top drags on the indices. The Nifty IT index fell over 1.6%, followed by Nifty Bank, which declined by 1.3%.

“There’s visible pressure on large-cap IT and banking stocks as investors remain cautious ahead of US inflation data and upcoming Q1 earnings,” said Anand Rathi, Head of Equity Strategy at Narnolia Financial Advisors.

4. Midcap and Smallcap Indices Show Resilience

Despite the weakness in headline indices, the BSE MidCap and SmallCap indices declined only modestly by 0.3–0.5%, signaling selective buying in broader markets. Stocks like Bharat Dynamics, Mazagon Dock, and Delta Corp managed to post gains.

5. Global Cues Remain Mixed

Asian markets closed mixed, with Hang Seng and Shanghai Composite ending in the red, while Nikkei 225 posted modest gains. European markets opened on a cautious note, awaiting key US CPI data due later today.

“The global narrative is still dictated by inflation and central bank commentary. Any unexpected spike in US CPI could reignite fears of rate hikes,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

6. Rupee Weakens Against US Dollar

The Indian rupee slipped 12 paise to close at ₹83.52 per US dollar, adding to negative sentiment in equities. A stronger dollar globally also weighed on emerging market currencies.

7. Sectoral Indices Reflect Broader Weakness

• Nifty IT: -1.6%

• Nifty Bank: -1.3%

• Nifty FMCG: -0.9%

• Nifty Metal: -0.6%

• Nifty Realty: +0.5%

The Realty index was one of the few gainers, with stocks like DLF and Oberoi Realty rising on hopes of sustained housing demand.

8. Foreign Institutional Investors Turn Net Sellers

FIIs offloaded equities worth ₹1,427 crore, according to provisional data, following a week of mixed participation. Meanwhile, DIIs were net buyers worth ₹928 crore, offering some cushion to the markets.

9. Volatility Index Inches Higher

The India VIX, a measure of near-term market volatility, jumped by 6.1% to 14.93, reflecting increased nervousness ahead of key economic events. Traders expect higher volatility in the coming sessions.

10. Q1 Earnings in Focus, Eyes on TCS Results

Investors are bracing for Q1FY26 earnings season, with TCS set to report its numbers post-market hours. Market participants are closely watching for revenue growth guidance, deal wins, and margin trends.

“The next leg of market direction will largely be driven by earnings commentary. If IT majors signal continued softness in global tech spending, we may see further downside in the sector,” said Shrikant Chouhan, Head of Technical Research, Kotak Securities.

Investor Outlook

Market experts believe the current correction is healthy after the sharp rally in June. However, the sustainability of gains will depend on global macroeconomic data, crude oil prices, and corporate earnings over the next two weeks.

“Investors should stay cautious and maintain a stock-specific approach. Valuations are still stretched in several pockets, especially in smallcaps,” added Chouhan.

Traders are advised to watch the US CPI data, corporate results, and commentary from the US Federal Reserve chair for cues on the global rate environment.

Thursday’s sell-off highlights the fragility in investor sentiment despite a resilient domestic economy. As the market digests mixed global cues and gears up for earnings season, near-term volatility is likely to remain high. Investors are recommended to tread carefully and use dips to accumulate quality stocks with long-term potential.