Latest news with #BharathRajeswaran
Mint
2 days ago
- Business
- Mint
Indian shares fall after Trump doubles tariff; Nifty, Sensex slip to three-month lows
(Updates for morning trade) By Bharath Rajeswaran and Vivek Kumar M MUMBAI, Aug 7 (Reuters) - Indian shares fell on Thursday, with the benchmarks slipping to three-month lows, after the U.S. slapped an extra 25% tariff on Indian exports, stoking concerns over the economic impact of heightened trade tensions. The Nifty 50 was down 0.4% at 24,475.55 points and the BSE Sensex lost 0.38% to 80,236.69 as of 10:22 a.m. IST. Both benchmarks fell to their lowest intraday levels since May. The broader small- and mid-caps lost 0.4% each. U.S. President Donald Trump on Wednesday imposed the additional tariff on Indian goods, citing New Delhi's continued imports of Russian oil. "As such, there is no major fresh negative surprise. Moreover, a 20-day window remains for negotiations, with a U.S. trade delegation expected to visit India on August 24, which is trimming the losses in markets," said Santosh Meena, head of research at Swastika Investmart. If implemented, a 50% tariff could significantly impact trade flows, weigh on economic growth and trigger a near-term knee-jerk reaction in domestic markets, said Mahesh Patil, chief investment officer at Aditya Birla Sun Life AMC. Before the additional tariff announcement, the Reserve Bank of India retained its GDP growth forecast for the year at 6.5%, downplaying tariff-related uncertainties. Analysts said the additional tariff has also kept foreign investors on edge. Foreign portfolio investors have already pulled out Indian shares worth $900 million so far in August, following $2 billion in outflows in July. "The market's near-term texture looks fragile, weighed down by a double whammy of U.S. President Donald Trump's tariff aggression and underwhelming June-quarter earnings," Swastika's Meena said. Sectors such as textiles, gems, and jewellery are particularly vulnerable to further downside pressure, he added. Textile makers Trident, Gokaldas Exports , Arvind, KPR Mill and Welspun Living lost 0.7%-3%. In contrast, PVR Inox rose 4.2% after posting a sharply narrower quarterly loss, with multiple brokerages projecting stronger earnings visibility for fiscal 2026. (Reporting by Bharath Rajeswaran and Vivek Kumar M; additional reporting by Pranav Kashyap in Mumbai; Editing by Sumana Nandy, Nivedita Bhattacharjee and Sonia Cheema)
Mint
3 days ago
- Business
- Mint
Rate-sensitives weigh on Indian shares after RBI holds rates, stays neutral
By Bharath Rajeswaran and Vivek Kumar M (Reuters) -Indian shares fell on Wednesday, led by rate-sensitive stocks, after the central bank held its key rates and maintained a 'neutral' policy stance, disappointing some investors who were expecting a dovish tilt amid rising global trade uncertainty. The Nifty 50 was down 0.4% at 24,551.1 points and the BSE Sensex lost 0.3% to 80,466.22, as of 11:10 a.m. IST. Both benchmarks traded flat ahead of the Reserve Bank of India's policy decision, but fell about 0.3% each soon after the rate pause. While maintaining that the domestic economic outlook remained "bright" despite global trade headwinds, the RBI held rates steady, as expected, and kept its policy stance at "neutral", following a surprise 50-basis point cut in June. "Given that the Indian rupee is weakening and global interest rate differentials are narrowing, the scope for a rate reduction was slim," said Umesh Kumar Mehta, chief investment officer at SAMCO Mutual Fund. Despite rising expectations of a softer stance, the RBI played it safe and that was likely its best option, three analysts said. All 16 major sectors logged losses. The broader small-caps and mid-caps fell around 1.4% and 1.2%, respectively, with analysts attributing their underperformance to greater exposure to the domestic economy and higher sensitivity to borrowing costs. Rate-sensitive sectors such as realty lost 2.4%, while consumer and auto indexes fell 0.9% each. Financials reversed early gains to trade 0.3% lower. Among individual stocks, biscuit maker Britannia lost 2% after missing profit estimates in the June quarter. Telecom services provider Bharti Airtel gained 1% after posting a jump in first-quarter profit, aided by new user additions and the lingering benefits of last year's price hikes. Bharti Airtel's unit Bharti Hexacom lost 2.5% after logging a lower June-quarter profit. (Reporting by Bharath Rajeswaran and Vivek Kumar M in Bengaluru; Editing by Janane Venkatraman, Nivedita Bhattacharjee and Sonia Cheema)
Mint
4 days ago
- Business
- 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)
Mint
28-07-2025
- Business
- Mint
Indian shares inch lower as Kotak earnings drag financials, trade deal delay weighs
By Bharath Rajeswaran and Vivek Kumar M (Reuters) -Indian shares inched lower on Monday as weak results from Kotak Mahindra Bank weighed on sentiment, while uncertainty over trade talks with the U.S. added to overall caution. The Nifty 50 fell 0.16% to 24,798.9 points and the BSE Sensex lost 0.2% to 81,325.4 as of 10:03 a.m. IST. The broader small-caps and mid-caps lost 0.3% and 0.2%, respectively. Negotiations between India and the United States remained deadlocked over tariff cuts on agriculture and dairy products, dimming hopes of an interim deal ahead of U.S. President Donald Trump's August 1 deadline. This is in contrast to a framework trade agreement struck between the U.S. and European Union over the weekend, easing fears of a bigger trade war between the two allies, which account for almost a third of global trade. High-weightage financials and private banks lost 0.2% and 1%, respectively, dragged by a 7% fall in Kotak Mahindra Bank after it posted a drop in quarterly profit. The IT index lost 0.5%, with Tata Consultancy Services shedding 1.6% after it announced plans to reduce its workforce by 2% in fiscal year 2026. The Nifty 50 and 30-stock Sensex have logged four consecutive weekly losses due to weak earnings, foreign outflows and uncertainty over the U.S.-India trade deal. "A dull earnings season and the lingering delay in the India-U.S. trade deal have clearly cast a shadow on market sentiment. With valuations still stretched across the board, investors are understandably treading with heightened caution," said G Chokkalingam, founder and head of research at Equinomics Research. Among individual stocks, Mphasis gained 2.4% on posting quarterly results in-line with estimates and on strong deal bookings, which has boosted the IT company's revenue growth outlook. SBI Cards and Payment Services lost 3.7% after missing profit estimates in the June quarter. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Eileen Soreng and Mrigank Dhaniwala)
Mint
17-07-2025
- Business
- Mint
IT stocks drag Indias benchmarks lower
By Bharath Rajeswaran and Vivek Kumar M (Reuters) -Indian shares fell on Thursday, weighed down by losses in IT stocks after Tech Mahindra missed quarterly revenue estimates, while uncertainty over U.S. Federal Reserve Chair Jerome Powell's tenure led to caution among investors. The Nifty 50 fell 0.4% to 25,111.45, while the Sensex lost 0.45% to 82,259.24. The Nifty is down 0.15% so far this week. The broader, more domestically focussed smallcaps and midcaps fell 0.1% and 0.2% respectively. Citi downgraded Indian equities to "neutral" from "overweight", citing stretched valuations. Asian markets were muted as uncertainty over the future of Fed Chair Powell raised concerns about U.S. monetary policy and capital flows into emerging markets. India's IT companies lost 1.4% on the day, making them the top sectoral losers. Tech Mahindra fell 2.8% after reporting a marginally lower-than-expected revenue a day earlier. "IT earnings have been predictably underwhelming and have kept the markets on a tight leash," said Samrat Dasgupta, CEO of Esquire Capital Investment Advisors. "With the India–U.S. trade deal still hanging in the balance and Trump's comments on Powell's tenure stirring fresh unease, investor nerves aren't exactly settling," Dasgupta said. Heavyweight financials and banks dropped 0.4% and 0.6%, respectively. Axis Bank fell 0.6% ahead of its results. The metals index gained 0.7%, led by Hindalco and Tata Steel which rose 1.2% and 1.7%, respectively, capping losses in the benchmarks. Among other individual stocks, HDFC Asset Management gained 2.9% on posting a 24% rise in quarterly profit. Auto components maker Sona BLW Precision Forgings jumped 6.8% after CNBC-TV18 reported the company is in advanced talks with China's BYD to supply electric vehicle components. The market is likely to stay stuck in a consolidation mode until there are signals of a consumption recovery or credit growth, Esquire Capital's Dasgupta said. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Mrigank Dhaniwala, Nivedita Bhattacharjee and Sonia Cheema)
