Markets are facing mounting pressure from multiple headwinds despite some positive developments. The Nifty 50 closed marginally lower at 23,618 on Tuesday, with broader markets outperforming, while analysts anticipate a sideways to under pressure market in the near term. Foreign Institutional Investors net sold shares worth ₹2,457 crore on Tuesday, while Domestic Institutional Investors were net sellers at ₹3,802 crore. The Indian rupee fell to a record low for a sixth consecutive day at 96.58, ending lower for the 12th straight calendar day, weighed down by mounting external pressures as the prolonged US-Iran conflict drives a sustained rise in crude oil prices and pushes US Treasury yields higher. As per NDTV Profit, the rupee dropped to an intraday low of 96.61 against the US dollar for the first time ever.
According to a Mint analysis of 866 BSE-listed companies that have declared their March-quarter earnings, only a limited set managed to stage meaningful recoveries after reporting stronger revenue and profit growth. Of the companies that declined ahead of results, 46.4% (402 stocks) managed to gain on result day after reporting growth in both revenues and profits. However, even these rallies proved difficult to sustain, with only 27.4% (110 stocks) remaining in positive territory the following day, and just 33.6% (37 stocks) continuing to hold gains to date. The India VIX fell 5% to settle at 18.68 levels, indicating reduced market fear despite the challenging conditions.
Finance, power and capital goods companies accounted for a significant share of results-day performers, supported by expectations of resilient domestic demand, improving margins and healthy order inflows. NLC India emerged as a notable gainer, declining nearly 7% ahead of its Q4FY26 results announced on 13 May before gaining around 6% on result day and extending gains to 14% the following session. The state-run power producer reported robust operational performance with consolidated revenue rising 31% year-on-year to ₹5,042 crore and Ebitda more than doubling to ₹1,774 crore with margins expanding to 35.2%.
Rajesh Singla, chief executive and fund manager at Alpha AMC, explained that markets are now quickly pricing in quarterly earnings and focusing more on future uncertainty. "The market reads the numbers in a few hours and then asks the harder question: What comes next?" he said, adding that vague guidance or cautious commentary often leads to result-day gains fading rapidly. According to Sachin Jasuja, head of equities and founding partner at Centricity WealthTech, investors are shifting focus away from backwards-looking quarterly earnings towards future growth visibility, margin sustainability and valuation comfort. The 23800 zone continues to act as a crucial resistance level, with immediate support placed at 23400.
India's leading IT firms witnessed sharp post-results corrections despite gaining ahead of earnings. TCS has fallen 13% since its 9 April results, while HCL Technologies remains down more than 20% after its 21 April earnings. Wipro has declined over 8% since announcing results on 16 April. Jasuja noted that weaker-than-expected guidance from HCL Technologies triggered concerns across the broader IT sector, affecting stocks such as TCS and Infosys even before their own results announcements.
Jasuja highlighted that aggressive foreign investor selling, elevated crude oil prices, rising fiscal pressures, and inflation concerns are all increasing caution around future earnings sustainability. "The bar for fresh buying has gone up considerably," Singla said, noting that a good quarterly print alone is no longer enough unless it is accompanied by stronger guidance, margin expansion, visibility or evidence that earnings growth can be sustained over the next few years. Rising long-term interest rates and persistent inflation are fueling higher rates, impacting growth stocks most acutely.
