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Indian stocks extend losing streak despite strong Q1 earnings
Nifty 50 is down for a seventh straight session, and elevated imported-crude costs tied to the West Asian conflict are raising fiscal and inflation risks.
India’s stock market has remained in a bearish stretch in August, with the Nifty 50 sliding for a seventh consecutive session and falling below 24,050 during Wednesday trading, nearing the 24,000 level. Over the past seven days, the index is down more than 2%, and the market has struggled to build momentum even after a better-than-expected Q1 earnings season.
LiveMint Markets said the issue is that investors are not fully responding to the earnings beat or expectations for a further recovery in corporate profits. The article points to the West Asian conflict as a key driver keeping crude oil prices elevated, which could pressure India’s fiscal position because the country imports roughly 80% to 85% of its oil needs.
With India among the world’s largest crude importers, sustained higher global oil prices raise concerns about inflation and make interest-rate hikes more likely, potentially weighing on economic growth and corporate earnings. Motilal Oswal Financial Services also said the Q1FY27 earnings season ended strongly, led by segments including financials, metals, oil and gas excluding oil marketing companies, automobiles, chemicals, textiles, and real estate.
Motilal Oswal attributed Nifty’s YoY performance in large part to companies including ONGC, Hindalco, Reliance Industries, JSW Steel, and Bharti Airtel, while naming InterGlobe Aviation, ITC, Dr Reddy’s Labs, Tata Motors PV, and Cipla as laggards. The brokerage noted the Nifty FY27 EPS estimate was raised by 0.6% to ₹1,232, and Choice Equity Broking said companies were able to pass through part of the price increases tied to the conflict, helping keep margin contraction below expectations.
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