What caused the Indian markets to plunge today?

The Indian markets plunged today due to a mix of factors, including stalled India-US trade talks, weak quarterly earnings from Kotak Mahindra Bank, and job cuts announced by IT giant TCS.

How much market cap was wiped out in a single session?

Nearly ₹4.9 lakh crore in market cap was wiped out in a single session as the Sensex dropped 572 points and the Nifty fell 156 points.

Why did TCS announce layoffs of 12,000 employees?

TCS announced layoffs of 12,000 employees, or 2% of its global workforce, due to weak demand and internal realignment, not because of AI replacing jobs.

Home / Business and Economy / Indian Markets Plunge Amid Trade Tensions and Earnings Woes

Indian Markets Plunge Amid Trade Tensions and Earnings Woes

28 Jul

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Summary

India-US trade talks stalled over tariffs
Kotak Bank's weak Q1 earnings add to banking sector concerns
TCS announces 12,000 job cuts, spooking IT sector

Indian Markets Plunge Amid Trade Tensions and Earnings Woes

Indian markets experienced a significant downturn today, with the Sensex dropping 572 points and the Nifty falling 156 points. This massive market cap erosion of nearly ₹4.9 lakh crore was driven by a confluence of factors.

Firstly, trade negotiations between India and the US have hit an impasse, primarily over tariffs on dairy and agricultural goods. This stalled progress has hurt investor confidence and raised concerns about India's global trade momentum.

Secondly, the banking sector faced further pressure as Kotak Mahindra Bank reported a drop in quarterly profit. The bank's gross NPAs rose, margins narrowed, and overall asset quality weakened, adding to earlier disappointments from Axis Bank.

Thirdly, the IT sector was spooked by TCS's announcement of 12,000 job cuts, or 2% of its global workforce. This is not about AI replacing jobs, but rather a response to weak demand and internal realignment. The Nifty IT index closed 0.7% lower, with other major IT firms like Wipro, HCL Tech, and Infosys also in the red.

Lastly, foreign institutional investors (FIIs) continued their selling spree, offloading ₹1,979 crore worth of equities today. This marked the fifth straight session of FII exits, with over ₹13,500 crore pulled out last week alone. Domestic institutional investors (DIIs) tried to cushion the fall with ₹2,100 crore in purchases, but the selling pressure remained.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.