On Friday, several prominent companies including Reliance Industries, JSW Steel, and Federal Bank are set to release their quarterly earnings for the April-June period of FY27. This follows a strong market reaction to earnings from IT giants Wipro and Tech Mahindra, with the latter seeing a 3% share price increase after surpassing earnings estimates.
The market momentum is expected to continue into Saturday, with major banks like HDFC Bank, Yes Bank, and ICICI Bank scheduled to announce their results. Analysts are particularly focused on Reliance Industries, anticipating a steady performance driven by a recovery in its oil-to-chemicals business and growth in digital services, despite challenges in retail and oil and gas sectors.
Wipro's shares fell over 3% after reporting muted Q1 profit growth, leading to brokerages lowering target prices. In contrast, Tech Mahindra's strong performance prompted several brokerages to raise their target prices for the stock.
Reliance's consolidated EBITDA is projected to grow by 4–10% year-on-year, supported by stronger refining margins and a weaker rupee. However, the retail segment may face pressure due to weak consumption trends, while the upstream oil and gas business could see a decline in production from the KG-D6 block.
The Indian stock market saw significant gains on Friday, with Sensex rising by around 600 points and Nifty surpassing 24,200, despite global market challenges and geopolitical tensions. Goldman Sachs forecasts the Nifty 50 to reach 26,500 by June 2027, reflecting a positive outlook on India's macroeconomic conditions.
Background
The earnings announcements come at a time when the Indian stock market is experiencing volatility due to global economic uncertainties and geopolitical tensions. The performance of major companies like Reliance Industries and leading banks is crucial as it could influence investor sentiment and market trends in the near term.
As the earnings season progresses, investors will closely monitor the performance of major banks and Reliance Industries, which could set the tone for the market in the coming weeks.
