Quick Wrap: Nifty Realty Index declines 4.07%
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Mint
an hour ago
- Mint
Sensex resumes downtrend after one-day hiatus, drops 300 points — 10 key highlights from Indian stock market today
Indian stock market's benchmark indices — Sensex and Nifty — resumed their downward trend after a one-day hiatus on Tuesday, August 5. With this, both indices are down in three of the past four trading sessions. The BSE barometer Sensex closed 308 points or 0.38% lower at 80,710. Meanwhile, its NSE counterpart, Nifty 50, settled at 24,649, down 73 points or 0.30%.
Mint
an hour ago
- Mint
Indias corporate earnings growth stays weak, banks and IT firms disappoint
By Bharath Rajeswaran and Vivek Kumar M Aug 5 (Reuters) - India's listed companies posted yet another quarter of lackluster earnings in the April-to-June period, extending a bout of weakness which began last year and weighed on benchmark stock indexes. The Indian economy is expected to grow at a world-beating 6.5% in the current fiscal year and inflation has been low. Yet, sectors from banks to IT services are facing earnings pressure from pockets of weakness in domestic and global demand. Aggregate profit growth for 38 of the Nifty 50 firms that have reported so far stood at just 7.5%, according to Motilal Oswal Financial Services. Jefferies said that full-year earnings per share estimates for 113 companies on the MSCI India index have been trimmed by 1.7%, with growth now projected at 8%. U.S. President Donald Trump's 25% tariff on shipments from India threatens to further cloud the outlook for export-heavy sectors. Trump has also warned of harsh tariffs over India's Russian oil imports—an action New Delhi called "unjustified." Earnings growth for Indian companies has been in single digits for five consecutive quarters, below the 15%–25% growth seen between 2020–21 and 2023–24, which fueled a 160% surge in the Nifty 50 index. Since the start of the fiscal year 2025, the Nifty has risen 10%. "It's clear that the earnings momentum has stalled, with slower credit growth dragging down performance of financials. However, this isn't just a sectoral story—it reflects broader weakness in nominal growth," Avinash Gorakshakar, director of research at Profitmart Securities said. Nominal GDP growth, which includes inflation, and is more relevant to corporate profitability, is seen staying below 10% for the third straight year. "A real revival may take shape only in the second half of FY2026—if credit growth revives, private capex kicks in, and a good monsoon boosts rural demand. Until then, the benchmarks are likely to remain rangebound," said Gorakshakar. Banks — the heaviest sector in the Nifty — delivered mixed results in the June quarter. Lenders reported lower margins following steep policy interest rate cuts and as bad loans in segments such as consumer loans, credit cards and microfinance started to rise. IT firms, the second-largest sector in the Nifty, also saw a subdued quarter amid persistent demand weakness from the U.S., a key market. There were a few bright spots in the June-quarter earnings, with auto, cement, and select infrastructure companies meeting or beating expectations. Analysts lowered their full-year profit forecasts for more companies, though the number of downgrades was lower than in the previous three quarters. "The earnings engine is clearly sputtering. Margin strain in banks, tepid global IT demand, and weak nominal growth have stalled profit momentum," said Samrat Dasgupta, chief executive of Esquire Capital Investment Advisors. "Until credit and consumption revive meaningfully, markets may find little earnings firepower to break higher." (Reporting by Bharath Rajeswaran and Vivek Kumar M in Bengaluru; Editing by Mrigank Dhaniwala)
New Indian Express
an hour ago
- New Indian Express
Indian markets end lower amid trade tensions and regulatory concerns
CHENNAI: Indian equity benchmarks closed lower on Tuesday as investor sentiment weakened due to renewed trade tensions with the US and concerns over proposed domestic regulatory changes. Both the Sensex and Nifty50 extended losses into the afternoon, reversing brief gains in early trade. The BSE Sensex ended down 308.47 points or 0.38%, closing at 80,710.25. The NSE Nifty50 declined 73.20 points or 0.30% to settle at 24,649.55, falling below the key 24,700 mark. Selling was seen across key sectors, with banking, IT, oil & gas, FMCG, and pharma each losing around 0.5%. However, the auto sector provided some support with a 0.5% gain. The Bank Nifty index dropped by 0.47% to close near 55,360, led lower by HDFC Bank, PNB, AU Small Finance Bank, and ICICI Bank. IndusInd Bank defied the broader trend, rising nearly 1.7%. Investor mood was dampened by US President Donald Trump's latest comments threatening higher tariffs on Indian goods in response to India's continued purchase of Russian oil. India rejected the U.S. move as 'unjustified and unreasonable.' According to Fitch Ratings, the effective U.S. tariff rate on Indian exports has jumped to 20.7% in 2025 from just 2.4% in 2024, further clouding the economic outlook.
