Stock market last week: A tale of investor enthusiasm, earnings realities, and sectoral resurgence
The domestic stock market had rallied by about 8% between June and July in anticipation of good corporate earnings. The Nifty50 index surged to an impressive peak of 19,991.85 on July 20. However, this enthusiasm encountered a temporary setback during the concluding phase of the Q1 result cycle, as a few prominent blue-chip companies delivered muted results. Consequently, there was a downward revision in the future earnings, impacting investor sentiment. To date, Nifty50 has corrected by about 2.8% from its recent high. The season began with a plus 20% earnings growth forecast for Nifty50, but a 3-4% downgrade followed. Yet, actual earnings growth stands to be healthy at 17%, showcasing India’s business resurgence amidst global challenges, deserving acknowledgment.