Stock Market Declines: Why The Nifty 50 Index Trading Below 25,000
Not just earnings, the markets are also cautious on US tariffs, which could be announced, as Trump said it is very close.
The Indian equity benchmark — NSE Nifty 50 — has fallen below the 25,000 level, led by private banks. Going into the first quarter, banks and financial services were supposed to be defensive, but with Axis Bank earnings that disappointed the street, the street is being cautious going into the weekend.
Earnings of companies accounting for 32% of the Nifty weights are expected between post-market on Friday and Monday. JSW Steel, Reliance Industries, HDFC Bank Ltd., and ICICI Bank Ltd. earnings are expected to be posted after Friday market close.
After Axis Bank earnings, there is a cautious watch for HDFC Bank and ICICI Bank earnings on Saturday. RIL is expected to see good telecom and retail growth but muted petrochemical and oil earnings.
Not just earnings, the markets are also cautious on US tariffs, which could be announced, as Trump said it is very close. Trump indicated India's tariff rates to be similar to Indonesia's. Indonesia saw a 19% tariff for its exports and zero tariff for US imports. India's tariff rates could be a little different, as India is likely to maintain a red line when it comes to agri- and dairy imports.
The market is also building a lower base, with Nifty shifting its base to 24,900 from 25,000. Nifty Put open interest concentration has moved to 24,900 from 25,000, suggesting a shift in the trading band.
