Can rising EPS estimates restore investor confidence despite tariff uncertainties?
Live Events
Agencies
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Mumbai: Investors may have a reason to cheer amid elevated uncertainties over the fallout of tariffs in the near term. Analysts have increased the earnings per share (EPS) estimates of most large companies following the March quarter, reversing two straight quarters of downgrades.Of the companies on the Nifty 500 index tracked by at least five analysts or more, 315 saw EPS upgrades in the fourth quarter compared with the December quarter, according to data from Eikon.EPS estimate upgrades signal improving earnings outlook, boosting investor confidence and often driving stock prices higher."After two consecutive quarters of disappointing earnings, we've now seen some early rounds of earnings upgrades from analysts across selective companies following the fourth quarter numbers," said Aniruddha Sarkar, chief investment officer and portfolio manager at Quest Investment Advisors. "Government capex picking up sharply in the last four months is largely responsible for the same, along with a pickup in consumer spending."Analysts had moderated the earnings outlook in the previous two quarters after profits slowed to single digits amid concerns over an economic slowdown. The EPS growth of Nifty 50 was at 4.1% in the June quarter and 8.9% in the September quarter from the year-ago periods. In January-March, EPS grew at 10.9% from the same period a year ago. The EPS growth for FY25 was at 9% year-on-year.Slowing corporate earnings and the resultant downgrades by analysts were reasons for the sell-off in Indian equities between September-end and March, as investors found stock valuations rich in the face of the squeeze in profitability. Money managers expect further recovery in earnings in the quarters ahead.The Nifty's EPS is expected to grow at about 13% on a compounded basis between FY25 and FY27, up from 10.9% in the fourth quarter, supported by a lower base of FY25, accommodative monetary policy, and continued government spending , said Nikhil Rungta, co-chief investment officer - equity at LIC Mutual Fund."Banks benefited from improved asset quality, while the auto sector saw steady domestic demand and successful new launches," he said. "Government-led capex supported infrastructure and real estate, and a rural demand revival boosted consumption."The pace of upgrades will be crucial for determining the direction of the market. "We believe the first quarter of FY26 could see some more modest upgrades but the pace of upgrades across the broader market could pick up from Q2 onwards as the low base of FY25 will come into play," said Sarkar.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
5 minutes ago
- News18
Flavor First: How India's Bold New Palate Is Shaping the Next Generation of Food Brands
India's new generation of food lovers is driving a bold, global shift in flavor, health, and innovation across the culinary landscape. From fiery peri-peri sauces to cloud-soft tiramisu, India's evolving culinary appetite is reshaping the contours of food entrepreneurship. A younger, more globally exposed generation of consumers is not only demanding more from what's on their plate but also from the brands that bring those experiences to life. Driven by a preference for bold flavors, health-forward ingredients, and global influences, Indian food brands are undergoing a transformation like never before. And at the heart of this evolution lies one defining principle: Flavor First. 'India's food scene is going through a revolutionary transformation," says Griffith David, Founder & CEO, Habanero Foods. 'Traditionally renowned for its complex, rich, and spicy flavors, today's next generation of Indian consumers is embracing even bolder, more varied tastes." Nowhere is this more visible than in the rise of contemporary condiments—flavor-forward dips, sauces, and chutneys that marry classic Indian spices with global twists. Tamarind chutneys with a smoky edge, garlicky aiolis tinged with desi masala, and peri-peri sauces that have made their way from Portuguese grills to Indian lunch tables—these products are emblematic of the modern Indian pantry. advetisement Importantly, these products aren't just about taste. 'With convenience at the forefront of today's hectic lifestyles, Indian dips and sauces are evolving to include low-fat, preservative-free, and plant-based versions," adds David. 'Consumers seek not only taste but also alternatives that suit their increasingly health-conscious lifestyles." Sweet Innovation: Desserts Get a Global Makeover 'In India, desserts have moved far beyond being just the sweet end to a meal; they've become a canvas for creativity, expression, and global discovery," shares Himanshu Chawla, co-founder, Bakingo. Desserts like Tres Leches, Tiramisu, and Basque Cheesecake are no longer niche in the Indian market, they're front-runners, even in Tier 2 cities. 'The rise of indulgent yet aesthetic formats like Dream Cakes reflects how Indian consumers are engaging with desserts more deeply they are seeking experiences that delight the senses and spark excitement," notes Chawla. For Bakingo, innovation and reliability go hand-in-hand. 'It's not just about following trends; it's about adapting to what excites Indian dessert lovers: layered textures, lighter bakes, international appeal, and always, uncompromised quality," he explains. According to Chawla, future-ready food brands must balance authenticity with invention, delivering global sophistication with local soul. Coffee Shops as Culture Hubs: The Barista Evolution India's cafés are no longer just about grabbing a cappuccino, they are becoming dynamic cultural spaces that blend wellness, indulgence, and community. Rajat Agarwal, CEO, Barista Coffee, believes today's café experience is about much more than caffeine. 'One of the clearest shifts we've seen? People want to enjoy their coffee and also take care of their health," says Agarwal. This consumer insight led to the launch of Barista's Zero Sugar Coffee range—offering all the flavor of their premium blends, without added sugar. But the evolution doesn't stop there. 'On the other end, there's playfulness," Agarwal adds, referencing Bubble Delight, Barista's take on the Boba beverage trend. 'It's fun, interactive, and surprisingly comforting. Our younger guests especially love it." Barista has also teamed up with Twiddles, cricket legend Yuvraj Singh's clean snacking brand, offering functional snacks like protein bars and power bytes alongside their beverages. 'The modern Indian café is no longer just a caffeine pit stop—it's a social space that brings together wellness, flavor, fun, and culture," says Agarwal. 'In this bold new India, coffee is just the beginning." Advertisement The Culinary Future: Health, Global Trends & Conscious Consumption According to Chef Dheeraj Mathur, Cluster Executive Chef at Radisson Blu, Kaushambi, the transformation of India's culinary landscape is as much about experience as it is about flavor. 'With rising disposable incomes, increased health awareness, and exposure to international cuisines, today's Indian consumers, especially millennials and Gen Z are driving demand for premium, high-quality, and artisanal food products," says Mathur. This new consciousness extends to every aspect of food creation—from fermentation and sous-vide cooking to transparent sourcing, sustainability, and digital engagement. 'Health-forward trends like superfoods, cold-pressed oils, and vegan alternatives are now central to many menus," notes Mathur. 'Storytelling, flavor innovation, and ethical practices are no longer optional—they're essential to success." A Flavorful Future Led by Young Palates India's next generation of food consumers is bold, curious, and uncompromising. They are seeking out flavors that are adventurous yet authentic, and food experiences that resonate with both their taste buds and their values. advetisement top videos View All From sauce jars in kitchen cupboards to intricately crafted cakes, and from café counters to five-star menus, food brands across India are rapidly adapting to meet these expectations. The common thread? A relentless pursuit of flavor, supported by innovation, health consciousness, and storytelling. As these voices from the industry make clear, the future of Indian food is not only global and health-conscious, it's thrillingly flavorful. And this time, flavor isn't just an ingredient. It's the identity. About the Author Swati Chaturvedi The News18 Lifestyle section brings you the latest on health, fashion, travel, food, and culture — with wellness tips, celebrity style, travel inspiration, and recipes. Also Download the News18 App to stay updated! Location : New Delhi, India, India First Published: June 10, 2025, 12:40 IST News lifestyle » food Flavor First: How India's Bold New Palate Is Shaping the Next Generation of Food Brands
India Today
9 minutes ago
- India Today
Rupee stuck in neutral as Asia's currencies race ahead on weak dollar
As most Asian currencies ride the wave of a weakening US dollar, the Indian rupee could miss the rally, reported news agency Reuters, quoting analysts, who said the currency could be held back by a structural imbalance in India's external the Singapore dollar, Korean won, and Taiwanese dollar have jumped between 6% and 9.5% so far this year, the rupee has barely at Barclays, Jefferies, and ANZ attribute this underperformance to one key metric—the Net International Investment Position (NIIP)—the difference between a country's overseas assets and its external liabilities. As of December 2024, India's NIIP stood at a negative $350 billion, meaning the country owes significantly more to the world than it owns in foreign assets. In contrast, several other Asian economies enjoy positive NIIP balances, often as a result of years of trade surpluses and global Kotecha, head of FX and EM macro strategy for Asia at Barclays, told Reuters that a lack of positive NIIP "leaves the rupee trailing its regional peers".Countries like Taiwan, South Korea, China, and Hong Kong hold net international surpluses, enabling their currencies to rise when the dollar weakens. That's because investors tend to repatriate capital or hedge against falling dollar-denominated assets—moves that boost local and Indonesia, however, are among the region's least liquid in terms of net international assets, Barclays Bechtel, head of global FX at Jefferies, told the news agency that this doesn't spell doom for the rupee, but it does explain why it may lag. 'It's not like a very negative story. It's just more of a lagging story,' he the US dollar continues to soften—driven partly by global hedging activity, as noted in the Federal Reserve's May meeting minutes—Asia's external surpluses are coming into sharper focus. That's putting the spotlight on structural disparities in foreign asset holdings, especially for India.'Overseas capital repatriation and increased FX hedging could keep lifting Asian currencies,' analysts at Fitch unit BMI wrote in a recent note, pointing to the sharp appreciation in the Taiwanese dollar as a case in India can narrow its external liabilities or boost foreign asset accumulation, the rupee may continue to sit out the region's currency Watch
Time of India
16 minutes ago
- Time of India
EV launches may stall as China chokes magnet supply: Crisil sounds alarm for auto sector
New Delhi: India's auto industry could face disruptions in electric vehicle (EV) production if the current delays in rare earth magnet shipments from China persist, Crisil Ratings has said. According to the rating agency, nearly 30 import requests from Indian companies had been endorsed by the Indian government by the end of May 2025, but none have yet been approved by Chinese authorities, with no shipments arriving so far. Rare earth magnets, although accounting for less than 5 per cent of a vehicle's cost, are essential for permanent magnet synchronous motors (PMSMs) widely used in EVs and hybrids, as well as in components like electric power steering in internal combustion engine (ICE) vehicles. In April 2025, China imposed export restrictions on seven rare earth elements and finished magnets, requiring detailed end-use declarations and client confirmations, including that the materials would not be used for defence purposes or re-exported to the US. The revised rules have led to approval delays of at least 45 days, creating a backlog and tightening global supply chains. India sourced over 80 per cent of its ~540 tonne rare earth magnet imports from China in the last fiscal. Crisil Ratings flagged that a disruption lasting more than a month could impact EV launches and stall production schedules. 'The supply squeeze comes just as the auto sector is preparing for aggressive EV rollouts. Over a dozen new electric models are planned for launch, most built on PMSM platforms,' said Anuj Sethi, Senior Director, Crisil Ratings. According to Crisil, most automakers currently have 4-6 weeks of inventory. If the situation is not resolved, EV model launches could be deferred or rescheduled starting July 2025. While the immediate risk is to the EV segment, ICE passenger vehicles and two-wheelers could also be affected if the supply crunch extends. In FY26, domestic passenger vehicle volumes are expected to grow 2-4%, while electric PVs could rise 35-40 per cent on a low base. Electric two-wheelers may see ~27 per cent growth, compared with overall 2W growth of 8-10%. But sustained supply tightness may slow this momentum, particularly for EVs. 'Despite contributing less than 5 per cent of a vehicle's cost, these magnets are indispensable for EV motors and electric steering systems,' said Poonam Upadhyay, Director, Crisil Ratings. 'Automakers are actively engaging with alternative suppliers in Vietnam, Indonesia, Japan, Australia, and the US, while also optimising existing inventories.' The report added that during the pandemic, rare earth magnet supplies remained stable, unlike semiconductors, reinforcing reliance on just-in-time inventories. However, unlike semiconductors which have a diversified supply base, over 90 per cent of rare earth magnet processing is concentrated in China, with limited short-term alternatives. Crisil Ratings said that automakers and the government are addressing the risk through two approaches: building strategic inventories and sourcing from alternate suppliers in the short term; and reducing import dependence via exploration, domestic production, and recycling in the long term. The pace of China's export approvals remains the immediate monitorable, Crisil said, as the sector braces for possible disruption ahead of a key EV launch cycle.
