14 hrs ago
Nifty 50 Ends H1FY27 Nearly Flat Amid Global Headwinds
The Nifty 50 is a group of major Indian companies whose share prices show how the stock market is doing.
It rose only 1.3% during the first six months of FY27.
The market was hurt by higher oil prices and fighting involving the United States, Israel and Iran.
Higher oil prices can make things more expensive for India because India imports a lot of oil.
Rising interest rates and bond yields around the world also made investors more cautious.
Some companies, such as Adani Enterprises, gained strongly, while ONGC and Infosys fell.
Experts think the market could improve in the next six months if oil prices settle and company earnings recover.
However, continued geopolitical tensions and high energy prices could limit the recovery.
The Reserve Bank of India is expected to consider a 25-basis-point rate increase on 7 October.
The Nifty 50 gained 1.3% in H1FY27, ending at 22,620.45 on 30 September.
The index faced pressure from the continuing US-Israel conflict with Iran, higher oil prices, foreign outflows and earnings concerns.
Adani Enterprises, Eternal and Adani Ports were the top Nifty gainers, rising 65%, 39% and 36%, respectively.
ONGC, Infosys and NTPC were the biggest laggards, falling 21%, 20% and 13%, respectively.
Experts expect a potentially stronger H2FY27, but say the outlook depends on oil prices, bond yields, currency stability and earnings growth.
- Who
- The Nifty 50, Indian companies, investors and market analysts, including Pankaj Pandey, Devender Singhal and Uttam Kumar Srimal.
- What
- The Nifty 50 recorded a 1.3% gain in H1FY27, while individual stocks posted sharply different gains and losses.
- Where
- The Indian stock market, amid effects from global markets and the conflict in West Asia.
- When
- H1FY27 ended on 30 September; the Reserve Bank of India was expected to review rates on 7 October.
- Why
- The market was influenced by higher oil prices, geopolitical uncertainty, rising global bond yields, foreign capital outflows and concerns about earnings growth.
Constructive Outlook
Cautious Outlook
Second-half market direction
Constructive Outlook
The market could recover in H2FY27 if earnings stabilise, growth expectations improve, geopolitical tensions ease and oil prices settle.
Cautious Outlook
Persistent geopolitical uncertainty, elevated energy prices and rising global yields could keep broad-market momentum limited.
Interest rates and liquidity
Constructive Outlook
Strong domestic retail and institutional inflows, along with lower planned government borrowing, could support markets and bond-market conditions.
Cautious Outlook
If US yields continue rising, Indian yields could come under pressure, potentially forcing the Reserve Bank of India to raise rates and affecting interest-rate-sensitive sectors.
Basis for equity gains
Constructive Outlook
Equities may benefit from a gradual recovery in corporate growth and profitability during the second half of the fiscal year.
Cautious Outlook
The outlook is not supported by expected margin expansion, and earnings downgrades and subdued corporate commentary remain concerns.
Key facts
- H1FY27 Nifty return
- 1.3% gain
- Nifty closing level
- 22,620.45 on 30 September
- Nifty two-year performance
- Down 12%
- Top gainer
- Adani Enterprises, up 65%
- Top laggard
- ONGC, down 21%
- India Q1FY27 GDP growth
- 7.8%
- Expected RBI decision
- A possible 25-basis-point rate increase on 7 October
Quotes
Uttam Kumar Srimal
Deputy Head of Fundamental Research at Axis Direct
“After a disappointing H1FY27 marked by earnings downgrades, subdued corporate commentary and heightened global uncertainty, the outlook for H2FY27 appears incrementally more constructive. The case for equities is not built on margin expansion, but on the prospect of earnings stabilisation and a gradual recovery in growth expectations.”
livemint.com
“If US yields continue to rise, then somewhere down the line, there will be pressure on Indian yields as well. That will have implications across the economy because the RBI could be forced to hike rates, and the entire interest-rate-sensitive segment could get impacted.”
livemint.com
Sources
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