Markets End Lower as IT, Telecom Stocks Drag; TCS Q1 Profit Rises 6% Despite Revenue Dip in Constant Currency

Mumbai, July 10 – While global cues remained mostly favourable, Indian equity indices ended Thursday’s trading session lower due to volatility in the telecom and IT sectors ahead of the Q1 results season. After market hours, the biggest IT services provider in India, Tata Consultancy Services (TCS), revealed its Q1 FY26 earnings, giving investors mixed signals.

Benchmarks Drop Ahead of Earnings Season

The BSE Sensex declined 345.80 points or 0.41% to close at 83,190.28, while the NSE Nifty shed 120.85 points or 0.47%, ending the session at 25,355.25. Intraday, the Sensex fell as much as 401 points.

Investor sentiment was weighed down by caution ahead of major tech earnings, especially from TCS, and continued uncertainty in telecom tariffs. Stocks such as Bharti Airtel, Infosys, Tech Mahindra, and Asian Paints led the losses. In contrast, TCS, Maruti, and Tata Steel saw buying interest.

TCS Q1 FY26 Results: Profit Up, Revenue Misses in CC Terms

TCS reported a net profit of ₹12,760 crore, marking a 6% year-on-year increase, with net margins expanding to 20.1%, up 90 basis points. Revenue rose marginally by 1.3% YoY to ₹63,437 crore, but declined 3.1% in constant currency terms, reflecting global demand softness.

Key Highlights from Q1 FY26:

• Operating margin improved to 24.5%, up 30 bps QoQ
• Total Contract Value (TCV) stood at $9.4 billion
• Headcount reached 613,069, with 6,071 net additions YoY
• Dividend of ₹11/share declared; record date: July 16, payout: August 4
• Attrition rate reduced to 13.8% LTM

Global Markets and FII Activity

Asian indices were mixed, with Kospi, Shanghai Composite, and Hang Seng ending higher, while Nikkei 225 slipped. European markets were trading mostly higher, and US markets closed positively on Wednesday.

Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹77 crore, according to exchange data.

Meanwhile, Brent crude prices eased 0.27% to $70 per barrel, offering mild relief on the energy cost front.

India-US Trade Talks on Tariff Dispute

Adding to the macro narrative, a commerce ministry delegation is set to visit Washington soon to resolve differences over a proposed trade pact. This comes as the US has extended a 26% additional import duty on Indian goods until August 1.

Outlook

While the global equity environment offered some support, domestic markets remained under pressure due to sector-specific concerns and Q1 result anticipation. TCS’ results will likely set the tone for broader IT sector performance in the days ahead.

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