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Times of Oman
2 days ago
- Business
- Times of Oman
Sensex, Nifty end in negative zone as weak Q1 results in finance, IT sectors weigh on market
Mumbai: Indian equity benchmarks on Friday ended in the negative zone after trading lower as market participants reacted to the first quarter (Q1FY26) earnings of the finance and IT sectors, despite positive global cues. At the end of the trading session, BSE Sensex was down 501.51 points or 0.61 per cent at 81,757.73, and the Nifty 50 at National Stock Exchange (NSE) was down 143.05 points or 0.57 per cent at 24,968.40. Axis Bank, Shriram Finance, Bharat Electronics, HDFC Life, and SBI Life Insurance are among the major losers on NSE, while Wipro, Tata Steel, ONGC, IndusInd Bank, and Infosys were the major gainers. On the sectoral front, except for metal and media, all other indices traded in the red with pharma, PSU bank, FMCG, capital goods, consumer durables, and telecom down 0.5-1 per cent. "A broad-based sell-off was observed in the national market amidst a disappointing initial set of earnings from the finance and IT sectors," said Vinod Nair, Head of Research, Geojit Investments Limited. Nair said that elevated valuations in large-cap stocks, coupled with significant net short positions held by Foreign Institutional Investors (FIIs), have contributed to a cautious sentiment among investors. "Moreover, additional tariff threats are also casting a shadow on India over its trade relationship with Russia. Despite these pressures, the medium- to long-term outlook for India remains optimistic, supported by low inflation levels and proactive monetary authority committed to sustaining economic growth," Nair added. Shrikant Chouhan, Head Equity Research, Kotak Securities attributed the sentiment to financials of the IT firms adding, "While macro data remained supportive, most large-cap IT services companies disappointed estimates." The Indian equity markets had a mixed week, with the Nifty-50 Index and Sensex falling 1 per cent each, while small-caps gained 1.4 per cent and mid-caps gained 1 per cent over the past week. Sector-wise, indices were mixed during the week. Health care (1.9 %), Auto (1.8%), FMCG (1.2%), Realty (3.4%) and Consumer Durable (0.7%) gained the most. While IT (- 1.3%) and Bank Nifty (-0.9%) lost the most. Within the Nifty, Hero Moto (+4.5%), M&M (+3.5%) and Bajaj Auto (+3.4%) gained the most, while Axis Bank (-5.9%), HCL Tech (-5.6%) and Tech Mahindra (-3.2%) lost the most. Indian equity markets also turned attention to the Q1FY26 earnings season, with investors having muted expectations for the season. On the macro front, June CPI inflation moderated to 2.1 per cent (May: 2.8%), the goods trade deficit in June narrowed from May levels to USD 18.8 billion, led by a sharp fall in oil and gold imports and the services trade surplus remained steady at USD 15.3 billion.
Time of India
6 days ago
- Business
- Time of India
Sensex down 1,459 points in 4 days, Nifty slides 2%: What's driving the Indian stock market slump? Here are 4 key reasons
Indian equities extended their losing streak to a fourth straight session on Monday, with the Sensex tumbling 1,459 points and the Nifty 50 sliding nearly 2% over the past four days, as mounting global trade tensions, foreign fund outflows, and tariff uncertainty dragged down benchmark indices. On Monday, the Sensex dropped as much as 527 points from its intraday high to touch a low of 82,010 before recovering partially to close at 82,253.46, down 247 points or 0.30%. The Nifty 50 declined 67.55 points, or 0.27%, to settle at 25,082.30, after dipping to the day's low of 25,001.95. The broader sell-off has pulled the Sensex down 1.7% and the Nifty 50 nearly 1.7% over the past four sessions. Meanwhile, the broader market showed resilience, with the BSE Midcap and Smallcap indices gaining on the day. Here are 4 factors for the fall 1. Global trade concerns Investor sentiment took a hit after U.S. President Donald Trump ratcheted up his aggressive tariff stance, announcing a 35% tariff on imports from Canada, followed by a 30% tariff on goods from Mexico and the European Union, effective August 1. Live Events Markets are now wary that a prolonged trade war could significantly dent global growth prospects. Closer to home, while reports suggest that Washington and New Delhi are exploring an interim trade deal, uncertainty remains high. "Market is expecting a U.S.-India trade deal soon with a tariff rate of around 20% for India. If this happens the market will get a sentimental boost. Any disappointment on this front can drag the market further down," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments. Despite India's relatively strong economic outlook, GDP is projected to grow over 6% in FY26, analysts warn that the country may not be completely insulated from global volatility. 2. Foreign investors turn sellers Foreign portfolio investors (FPIs) have turned net sellers of Indian equities after a four-month buying spree, adding pressure on the benchmark indices, particularly large-cap stocks where FPIs have significant exposure. On July 11, foreign institutional investors (FIIs) offloaded shares worth Rs 5,104.22 crore. In contrast, domestic institutional investors (DIIs) provided some support, purchasing equities worth Rs 3,558.63 crore on the same day. "There are signs of FPI inflows weakening. After three months of positive inflows FPI has turned negative, though marginally, so far in July," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, adding that the selling on July 11 reflect the first negative inflow number after three months of positive inflows in April, May and June. The shift in FPI sentiment has weakened momentum in frontline stocks, contributing to the broader correction witnessed over the past week. "FPI selling in July after three months of buying can be attributed to the recovery in the market from the March lows and the consequent elevated valuations. Since other markets are cheaper relative to India, FIIs may again sell and move money to cheaper markets as a short-term strategy. In H1 2025 Indian market underperformed most markets including the MSCI EM index," said Vijayakumar.
Mint
10-07-2025
- Business
- Mint
Can Q1 results drive Nifty 50 to record highs despite the absence of an India-US trade deal?
The Indian stock market has been rangebound for almost a month now. The benchmark index has traded in a range of 24,470-25,670 since June. At first glance, it appears that the Indian stock market lacks fresh triggers to sustain gains above 25,600, which can drive it to fresh highs. However, the Indian stock market has exhibited remarkable resilience since March despite geopolitical tensions, tariff-related uncertainties, and elevated domestic market valuations. The Nifty 50 has been in the green monthly since March. However, in July so far, it has lost about half a per cent. The biggest factor limiting the gains of the domestic market is lingering uncertainty over an India-US trade deal. Despite prolonged negotiations and positive signals from Washington, India and the US have yet to finalise a trade pact. Both countries have now pushed back their deadline to finalise the trade deal to mid-July as US President Donald Trump extended the deadline for reciprocal tariffs to 1 August. While hopes are high that India and the US will strike a deal before the deadline, a full agreement between the two countries could be a multi-phased process. In that case, it is too early to conclude whether a potential preliminary deal will significantly trigger the market. Indian corporates will release their June quarter (Q1FY26) scorecard in the coming days. IT major TCS will report its Q1 results on July 10. Experts say that while an India-US trade deal will be an immediate trigger, the market needs significant earnings growth to sustain gains and touch record highs. Some experts highlight that the market has largely discounted a trade ideal, and it may not push the market beyond a range. "A clear breakout of the upper range of Nifty 25500 may happen on positive news of a trade deal between the US and India. But this is partly discounted by the market and, therefore, will not be sufficient to sustain the rally well beyond Nifty 25,500," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. The Nifty 50 may see limited upside in the short term, primarily due to muted earnings growth. Profit growth for index-heavy companies is expected to remain in single digits, which could cap gains in the coming months. According to most experts, the June quarter results may not push the market to fresh highs. Experts expect a significant recovery in earnings only from Q3 onwards, even though they highlight that Q1 results will be better than the previous quarter. "The market's move will depend on what kind of deal we get on tariffs. Q1 earnings are expected to be slightly better than Q4, so that may not trigger a broad-based excitement in the market," said Pankaj Pandey, the head of research at ICICI Securities. "We will see more of a stock-specific action. At this time, the market has limited triggers for a breakout. The range-bound trade may continue for some time. We can see significant earnings growth in the second half of the current financial year (H2FY26)," Pandey said. In the near term, with mild earnings growth, stock-specific action is likely to dominate rather than a broad-based market rally. Brokerage firm JM Financial expects Nifty Q1 PAT (profit after tax) to rise 10.4 per cent year-on-year (YoY), led by strong performance in oil and gas. Excluding BFSI, Q1 Nifty PAT is expected to rise at 14 per cent. "Weak BFSI performance can be attributed to moderating loan growth, NIM (net interest margin) compression of 30 bps YoY, weak fee income growth and elevated credit costs," JM Financial said. Barring short-term obstacles, experts say any correction in the market is an opportunity to buy because India's long-term story remains intact. "Most domestic macroeconomic indicators remain supportive. Low inflation, robust GDP growth, strong foreign exchange reserves, a surplus monsoon, and the prospect of RBI rate cuts all paint a favourable backdrop for the economy," said G. Chokkalingam, the founder and head of research at Equinomics Research Private Ltd. However, Chokkalingam added that a key near-term concern is the ongoing trade uncertainty between India and the US. Markets are closely watching for signs of a deal, and sentiment may remain cautious until there is clarity on that front. From an earnings perspective, Chokkalingam believes a meaningful recovery may still be one to two quarters away. "At the current pace of earnings growth, the Sensex could rise another 7–8 per cent during this fiscal year," he said. Amid expectations of moderate gains in the benchmarks, experts believe real opportunities are in the broader market. "With over 4,000 small- and mid-cap stocks, investors have a wide universe to explore compelling opportunities—whether it's unique growth stories, deep-value plays, or acquisition candidates," said Chokkalingam. "The rise in India's retail investor base is also encouraging: more than 22 crore investors are now registered, with nearly six lakh new investors joining every week. This expanding participation bodes well for sustained interest in mid- and small-cap stocks," Chokkalingam added. Chokkalingam suggests investors may consider allocating at least 30 per cent of their equity portfolio to large-cap stocks like those in the Sensex and Nifty, while 60–70 per cent can be exposed to mid- and small-caps, depending on individual risk appetite for the next two quarters. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Time of India
06-07-2025
- Business
- Time of India
Foreign funds buy 14.6k cr stocks in June
NEW DELHI: Foreign investors put in Rs 14,590 crore in the equity market in June, marking the third straight month of investment, supported by improving global liquidity conditions, easing geopolitical tensions, and rate cut by RBI. However, foreign portfolio investors (FPIs) turned net sellers in July and pulled out Rs 1,421 crore in the first week of the month, data with the depositories showed. In near term, FPI flows are expected to remain choppy on account of tariff deadline developments and US data volatility, Vaqarjaved Khan, senior fundamental analyst, Angel One, said. FPIs buying will hinge on Q1 results. "If the results indicate earnings recovery, that will be positive," V K Vijayakumar, chief investment strategist, Geojit Investments, said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
06-07-2025
- Business
- Business Standard
Influx of ₹14,590 cr by foreign investors in Jun; early Jul sees withdrawal
Foreign investors put in Rs 14,590 crore in the country's equity market in June, marking the third straight month of investment, supported by improving global liquidity conditions, easing geopolitical tensions, and a rate cut by the Reserve Bank of India. However, foreign portfolio investors (FPIs) turned net sellers in July and pulled out Rs 1,421 crore in the first week of the month, data with the depositories showed. Going forward, in the near term, FPI flows are expected to remain choppy on account of tariff deadline developments and US data volatility, Vaqarjaved Khan, Senior Fundamental Analyst, Angel One, said. In addition, FPIs buying will hinge on Q1FY26 result indications. "If the results indicate earnings recovery, that will be positive. Disappointment on these factors can impact the market and, thereby, flows," V K Vijayakumar, Chief Investment Strategist, Geojit Investments, said. According to the data with the depositories, FPIs made a net investment of Rs 14,590 crore in equities in June. This positive momentum follows a net investment of Rs 19,860 crore in May and Rs 4,223 crore in April. Prior to this, FPIs had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January. With this, FPIs' outflow stood at Rs 79,322 crore in 2025 so far. "FPIs exhibited a cautious yet improving stance in June 2025, beginning the month with notable outflows from the equity markets driven by elevated US bond yields, trade tensions, overvalued Indian stocks and deteriorating geopolitical environment," Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment, said. However, sentiment shifted towards the later part of the month as global liquidity conditions improved, geopolitical tensions eased, the RBI cut rates, the rupee strengthened, and oil prices stabilised, he added. In the second half of June, FPIs were buyers in financials, autos and auto components, and oil and gas sectors, while they turned sellers in capital goods and power. On the other hand, FPIs pulled out Rs 6,121 crore from the debt general limit and Rs 6,366 crore from the debt voluntary retention route during the period under review.
