White balance is applied while processing raw data. The purpose of white balance is to reach R = G = B for neutral (grey, non-colored, achromatic) areas of the image. The whole problem arises from the fact that color channels of the sensors (for typical Bayer, those are R, G1, B, G2) have different "sensitivities", and the responses also depend on the spectrum of the light. Typically, for daylight green channels are about half a stop to one stop more sensitive than red and blue; for incandescent light the responses in green and red channels are close to each other, while the response in blue channel is lagging behind. So, to equalize the responses white balance coefficients are applied through the multiplication of the linear raw data in respective channels. To put some numbers to it, here are the white balance coefficients for Olympus E-M5 camera, in R, G1, B, G2 order:
// Olympus E-M5 CameraGroup= 6
{"Olympus", "E-M5", "Tungsten", {1.296875f, 1.0f, 3.265625f, 1.0f}},
{"Olympus", "E-M5", "3300K CCT", {1.546875f, 1.0f, 2.578125f, 1.0f}},
{"Olympus", "E-M5", "3600K CCT", {1.640625f, 1.0f, 2.367188f, 1.0f}},
{"Olympus", "E-M5", "3900K CCT", {1.734375f, 1.0f, 2.203125f, 1.0f}},
{"Olympus", "E-M5", "FL-W", {2.000000f, 1.0f, 2.601562f, 1.0f}},
{"Olympus", "E-M5", "4300K CCT", {1.851562f, 1.0f, 2.125000f, 1.0f}},
{"Olympus", "E-M5", "4500K CCT", {1.921875f, 1.0f, 2.148438f, 1.0f}},
{"Olympus", "E-M5", "4800K CCT", {1.976562f, 1.0f, 1.945312f, 1.0f}},
{"Olympus", "E-M5", "Daylight", {2.078125f, 1.0f, 1.820312f, 1.0f}},
{"Olympus", "E-M5", "Cloudy", {2.281250f, 1.0f, 1.640625f, 1.0f}},
{"Olympus", "E-M5", "6600K CCT", {2.304688f, 1.0f, 1.734375f, 1.0f}},
{"Olympus", "E-M5", "Shade", {2.476562f, 1.0f, 1.437500f, 1.0f}},
{"Olympus", "E-M5", "Flash", {2.351562f, 1.0f, 1.617188f, 1.0f}},
To convert to photographic stops / EV, calculate log2 of the numbers.
From above you can see that if the image is taken in daylight, the blue channel needs to be multiplied by 1.8. If the white balance is set to Tungsten it will be multiplied by a much larger amount, 3.3 times. That is why it will appear bluish.