Nifty 50 profit grew 18% in June quarter, a 10-quarter high. 19 sectors beat estimates; upgrade ratio improved to 1.5. Analysts cite festive demand and credit expansion to sustain momentum.
Alpha Score of 43 reflects weak overall profile with moderate momentum, weak value, weak quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
Nifty 50 companies posted 18% profit growth in the June quarter, the highest in 10 quarters, with 19 sectors beating estimates, five brokerages said. The broad-based beat reinforced expectations of sustained earnings momentum despite margin pressure across several industries.
Motilal Oswal described the quarter as "picture perfect," with oil marketing firms the only weak spot. The upgrade-to-downgrade ratio improved to 1.5, implying 15 upgrades for every 10 downgrades, signalling a broad-based improving profit outlook for the rest of the fiscal year.
Large-cap firms such as Hindalco, Reliance Industries, JSW Steel, ONGC and Bharti Airtel led the beat on the Nifty 50, analysts said. Lenders benefited from faster loan growth, low credit costs and operating leverage, according to Jefferies. Non-bank lenders saw robust growth in assets under management and broadly benign asset quality.
Metals gained from improved pricing, the brokerage said. Retail, jewellery, paints, selected internet companies and consumer staples reflected resilient demand, premiumisation and, in some cases, price-led growth.
Analysts’ upbeat sentiment excluded oil marketing companies, which reported sharp first-quarter losses. Elevated crude prices overwhelmed strong refining margins, leaving earnings highly sensitive to fuel-price pass-through, inventory effects and crude volatility in the coming quarters.
Brokerages also flagged margin pressure across sectors as higher prices for metals, crude derivatives, palm oil, freight and wage costs weighed on profitability. Autos, consumer goods and logistics were among the sectors affected. IT services faced AI-linked pricing pressure, while lenders saw compression in net interest margins.
Festive demand, GST-related consumption support, credit expansion and investment activity are key factors expected to underpin fiscal 2027 earnings, the brokerages said.
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