Tariffs, Earnings Under Watch as Markets Stay Muted

The broader Indian market has remained directionless over the past few weeks, amid global uncertainty ahead of tariff deadlines and a mixed corporate earnings season. On its weekly options expiry day, the headline NIFTY index witnessed selling pressure near the 25,240–25,200 zone, pushing prices lower towards the psychological 25,000 mark. The index posted an intraday low of 25,018 and, at the time of writing, was trading just below 25,100.

The NIFTY index recorded an advance-decline (A/D) ratio of 18/32, indicating weakness, while the broader NIFTY 500 saw 327 declines against just 170 advances — reflecting weakness across the board.

Sectoral Highlights:

• The PSU Bank Index gained 1.05% at the time of writing.

• IT and FMCG indices declined by 2.14% and 1.09%, respectively.

Stock-Specific Developments:

• BL Kashyap bagged an order worth ₹152 crore; the stock traded up 1% at ₹71.

• Supreme Industries raised its FY26 volume growth outlook to 15–17%, up from the earlier estimate of 10–12%.

• LT Foods reported its Q1 earnings:

  • Net profit: ₹168.5 crore vs ₹153.2 crore (up 10%)

  • Revenue: ₹2,464 crore vs ₹2,070.5 crore (up 19%)

  • Margins came under pressure, reported at 10.77% vs a consensus estimate of 11.63%.

Earnings Snapshot:

The Q1 earnings season has seen a mix of hits and misses. Of the 351 companies that reported so far:

• 205 reported positive growth

• 146 reported negative growth

The media and entertainment sector emerged as the buzzing space, while telecom remained the underperformer. Overall, average earnings for these 351 companies grew by 6.05%, indicating a sub-par single-digit growth. However, net profit rose 18.51%, driven by margin improvements in select sectors.

NIFTY Outlook:

The index is expected to find strong support around the 25,000–25,020 zone, with stiff resistance near 25,200–25,240, suggesting a range-bound trend. A break below the 25,000 level could trigger additional downside pressure.

Commodities:

• Gold witnessed profit-taking and retreated from the ₹1 lakh mark, following unconfirmed reports that the US and EU are close to striking a 15% tariff deal.

• WTI crude oil traded below $66/bbl amid ongoing global demand concerns.

• On MCX, crude traded below ₹5,700 levels and is considered a sell on rise at current levels.

The report is being prepared by Bitupan Majumdar, an independent SEBI registered research analyst with registration code INH30006962. Please consult your financial advisor before taking investment decision.

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