India Inc. delivers strongest earnings in 10 quarters; markets stay in the red
The Nifty 50 settled at 24,287.65, down 78.35 points or 0.32%, while the Sensex slipped 0.36 per cent to close at 77,728.16
India's corporate earnings set a record in the most recent quarter, surpassing estimates by a wide margin, yet the country's stock market continued its downward trajectory. The latest India Strategy report from Motilal Oswal Financial Services highlighted this paradox. Despite the robust earnings performance, market indices remained in the red on Monday, marking a fifth consecutive day of losses.
The Nifty 50 ended at 24,287.65, down 0.32 per cent, while the Sensex fell 0.36 per cent to 77,728.16. This performance came as no surprise to analysts, who warned of near-term caution due to rising crude oil prices and geopolitical uncertainties. Despite these headwinds, the earnings season delivered a glimmer of hope. Nifty 50 companies reported an impressive 18 per cent year-over-year growth in profit after tax, the best in 10 quarters.
Major players like ONGC, Hindalco, Reliance Industries, JSW Steel, and Bharti Airtel collectively contributed to 60 per cent of the earnings boost. Mid-cap and small-cap companies also delivered strong results, with PAT rising by 23 per cent and 31 per cent respectively. However, the rupee continued to weaken, falling 14 paise to trade at 95.59 against the dollar.
Analysts suggest that market sentiment will hinge on global cues, particularly the US Federal Reserve's July FOMC minutes, crude price trends, and developments surrounding the US-Iran ceasefire.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
