Indian markets dip amid Q1 earnings concerns

Mumbai

The Indian stock market ended the week with a small fall of 0.26%, marking its fourth straight weekly decline. Experts say the drop was mainly due to weak Q1 earnings and cautious global market sentiment.

The Nifty50 index closed at 24,837 on Friday, slipping below the important 24,900 level. Foreign investors were net sellers for the fifth consecutive session, putting pressure on the market. Mid-cap and small-cap stocks saw bigger falls, performing worse than large companies.

Mandar Bhojane of Choice Equity Broking said, “Nifty is trading below its 20-day and 50-day moving averages, showing a short-term bearish trend. The next support level is 24,750. If that breaks, the index could fall further to around 24,580, near the 100-day moving average.”

On the global front, the new US law on stablecoins, the Genius Act, may affect capital flow in India and other countries, as banks might have to allow stablecoin transactions through subsidiaries.

The newly signed India-UK free trade deal brings relief to sectors like textiles, automobiles, pharmaceuticals, and jewellery by reducing tariffs. Vinod Nair from Geojit Investments called it “a key step to ease global trade barriers.”

Private banks like ICICI and HDFC reported steady earnings, while firms like PNB Housing Finance and Bajaj Finance benefited from improved fundamentals. However, subdued outlooks from IT and financial sectors raise concerns about valuation sustainability.

Despite global volatility, India’s economy remains strong. The Reserve Bank of India noted lower inflation, raising hopes for future interest rate cuts.