Day: July 11, 2025

Sensex Falls 700 Points, Nifty Crashes Below 25,200 — What’s Driving the Market Down?

The Indian market took a significant hit today, with the Sensex falling nearly 700 points and the Nifty slipping below 25,200, amid broad-based selling across sectors.

1. Weak Q1 Earnings from TCS

  • TCS posted a 3.1% year-on-year decline in constant currency revenue for Q1FY26, missing analyst expectations.
  • The stock dropped roughly 2–3%, which triggered a broader sell-off in other major IT names like Infosys and Wipro.
  • The Nifty IT index was down nearly 1.6% ([turn0search0], [turn0search4]).

2. Trade Tariff Worries

  • Global markets reacted negatively after U.S. President Trump announced potential new tariffs—including up to 35% on Canadian imports and 15–20% on other countries.
  • This revived fears of a broader trade war impacting global and domestic trade sentiment ([turn0search4]).

3. Rising Oil Prices and Geopolitical Risk

  • Oil prices jumped due to possible sanctions on Russia, pushing Brent above $68 and WTI near $67.
  • Higher crude costs raised concerns over inflation and manufacturing margins, weighing on the Indian market ([turn0search4]).

Market Snapshot

IndexToday’s Move
Sensex↓ ~700 points (~0.8%)
Nifty 50↓ ~200 points (~0.76%)
Nifty IT Index↓ ~1.6%
Nifty Auto & Oil & Gas↓ 1–1.2%
Mid and Smallcaps↓ ~1%
Market Cap↓ ₹3.03 lakh crore

Investor Takeaways

  • IT remains under pressure: With Q1 earnings disappointments from TCS setting the tone, the broader IT sector remains vulnerable.
  • Trade talk uncertainty: Watch for updates from U.S.–India (and Canada) trade discussions as they heavily influence market sentiment.
  • Crude trends matter: Continued upward pressure on oil could feed into inflation and dampen corporate margins.

What to Monitor Next

  • TCS earnings commentary and other large IT names
  • Updates on U.S. trade tariffs, particularly concerning India
  • Oil price movement and any geopolitical escalations
  • Global index trends in the U.S., Europe, and Asia for broader market cues

Conclusion

Today’s correction reflects a mix of macroeconomic and corporate triggers—from weak IT earnings and trade-headline anxiety to commodity pressures. Investors should maintain caution, focus on resilient sectors like pharma and FMCG, and avoid buying near short-term lows until market clarity improves.

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Glenmark Pharma Cools After 20% Rally on $1.9 Billion AbbVie Oncology Deal

Glenmark Pharmaceuticals witnessed high volatility this week following a landmark licensing deal involving its novel oncology candidate ISB-2001. The company’s stock hit a 20% upper circuit before retreating slightly, reflecting both excitement and market recalibration.

Initial Surge on Deal Announcement

Glenmark’s stock rallied strongly after announcing that Ichnos Glenmark Innovation (IGI), a subsidiary of the company, had signed a global out-licensing agreement with AbbVie. The agreement centers on ISB-2001, a first-in-class trispecific T-cell engager in Phase 1 clinical trials for multiple myeloma.

The deal is potentially worth up to $1.925 billion, including:

  • $700 million upfront payment
  • $1.225 billion in milestone-based payments
  • Double-digit royalties on future net sales

This makes it one of the most significant licensing deals involving an Indian pharmaceutical company.

Market Reaction

The market responded with sharp enthusiasm. Glenmark’s shares surged nearly 20% intraday, reaching the upper circuit limit. However, as the trading session progressed, some investors booked profits, causing the stock to retreat modestly.

This type of pullback is typical after such steep gains, particularly when speculative interest is high.

Strategic Significance of ISB-2001

ISB-2001 is a promising trispecific antibody that targets BCMA, CD38, and CD3, aiming to engage T-cells to kill multiple myeloma cells. It holds both orphan drug and fast-track designation from the US FDA, which may accelerate its path to approval.

The drug’s novel mechanism and regulatory advantages make it one of the most advanced biologics emerging from an Indian biotech pipeline.

Financial and Industry Implications

This deal significantly boosts Glenmark’s innovation credentials and strengthens its balance sheet. With the upfront funding, the company is expected to reduce debt and reinvest in core operations. Moreover, future royalty streams could materially improve Glenmark’s profitability, depending on the drug’s success.

It also sets a precedent for Indian pharmaceutical firms looking to pivot toward research-led growth models rather than generics alone.

What to Watch

  • Progress of ISB-2001’s clinical trials and regulatory milestones
  • AbbVie’s development strategy and timelines for the asset
  • Glenmark’s reinvestment of upfront proceeds
  • Market reaction to quarterly earnings and R&D guidance

Conclusion

Glenmark’s ISB-2001 licensing agreement with AbbVie marks a pivotal moment in its journey toward becoming a research-driven global pharma company. Although the stock has cooled after its initial rally, the long-term implications of this deal — both financial and strategic — are substantial. Investors should keep a close eye on further developments from both Glenmark and AbbVie in the coming quarters.

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₹1,345 Crore Incentive Scheme to Launch Rare Earth Magnet Production in India

India is set to take a significant leap toward self-reliance in advanced material technology. Heavy Industries and Steel Minister H.D. Kumaraswamy has announced that the government is finalizing a ₹1,345 crore incentive scheme aimed at promoting domestic manufacturing of rare-earth magnets—key components used in electric vehicles (EVs), defense systems, telecommunications, and renewable energy equipment like wind turbines.

Why the Urgency?

The announcement comes in the wake of China tightening export regulations on seven rare-earth elements and finished magnets. These new rules, which require export licenses and end-use disclosures, have raised global concerns over supply disruptions. India, which currently imports over 80 percent of its magnet requirement, has now recognized the urgent need to build indigenous capacity.

Scheme Highlights

  • The proposed ₹1,345 crore subsidy scheme is under inter-ministerial review, involving the Ministries of Heavy Industries, Mines, Finance, Atomic Energy, and NITI Aayog.
  • The scheme will support full-cycle production—from rare-earth oxide processing to finished magnet manufacturing.
  • Initially, two manufacturers may be selected, but the number could expand as the policy framework is finalized.
  • Subsidies in the range of 20–50 percent of project costs have been suggested by stakeholders and are being evaluated.
  • Once approved by the Union Cabinet, the scheme will run over a span of five to seven years.
  • Commercial production under this scheme is expected to begin within two to three years post-approval.

Industry Interest

Several companies have already shown interest in setting up facilities. Mahindra & Mahindra and Uno Minda are reported to be exploring magnet manufacturing either independently or through joint ventures. Other players like Sona Comstar and Midwest Advanced Materials are also assessing the opportunity. Midwest is aiming for 500 tonnes of production by the end of this year, with plans to scale up to 5,000 tonnes by 2026.

Strategic Significance

India holds the third-largest rare-earth reserves in the world, estimated at 6.9 million tonnes. However, domestic production remains extremely limited—only 2,900 tonnes were processed in 2024. The new scheme aims to change that by building a comprehensive ecosystem for rare-earth magnet manufacturing.

This development is critical not just for EVs but also for defense manufacturing, wind energy, and various high-tech applications. By cutting its dependency on China, India strengthens its industrial security and global competitiveness.

Key Points to Monitor

  1. Final structure of subsidies and eligibility conditions.
  2. Selection of manufacturing entities and their investment timelines.
  3. Outcome of inter-ministerial consultations and Cabinet approval.
  4. Roll-out timeline and expected production capacity.

Conclusion

The ₹1,345 crore rare-earth magnet manufacturing incentive is a strategic policy move with wide-reaching implications. It positions India to become a global player in critical material technologies and reduces reliance on external sources in essential sectors. If implemented efficiently, this scheme could drive India’s technological future, boost industrial self-reliance, and foster innovation across multiple domains.

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