Stories
Markets Espresso: Bulls Find Relief as Nifty Breaks Red Streak and Earnings Season Begins
- •The Nifty broke its streak of weekly losses with a modest 100-point gain, avoiding a ninth consecutive red week thanks to a late rebound.
- •Indian IT stocks and a strong provisional business update from Trent provided a much-needed boost to market sentiment.
- •Jefferies is favoring largecaps due to favorable risk-reward ratios, though traditional bellwether portfolios like HRITHIK continue to face stagnant returns.
- •Earnings season is back, with TCS setting an optimistic tone, placing the spotlight on upcoming results from other major firms and banks.
Key Questions Answered
Indian IT stocks led the market gains on Friday, helping drive a green candle on the Nifty chart and breaking a streak of nine consecutive weekly losses. TCS's optimism-infusing results and a Wall Street AI stock sell-off drove this recovery.
Trent reported a 23% revenue growth in its provisional business update, which pleasantly surprised the street after quarters of disappointing results. Consequently, the stock surged 12% the following day and finished the week as the third-best Nifty 500 performer.
The HRITHIK portfolio has suffered years of zero returns and negative performances, with stocks like HDFC Bank down 11% and HUL down 30% over five years, heavily weighing down the broader Nifty index. Despite these extended struggles and low valuations, most analysts continue to maintain a "buy" rating on these largecaps.
